Former NYC Mayor Eric Adams Denies Involvement in NYC Token Crash Amid Rug-Pull Claims
Former New York City Mayor Eric Adams has refuted claims that he moved funds or profited from the NYC token after it fell more than 80% within the first hour of its launch.
A spokesperson for Adams attributed the token’s crash to market volatility and said Adams did not move investor funds. According to Todd Shapiro, a spokesperson for Adams, “Recent reports alleging that Eric Adams withdrew funds from the NYC token are false and are not supported by any evidence.” Shapiro made this statement on X on January 14.
Token Launch and Controversy
Adams launched the Solana-based token, touting it as a way to combat growing hatred and inspire the next wave of innovation in the city. However, the token’s launch soon ran into controversy after some members of the crypto community reported on-chain data that suggested millions in liquidity were being drained from the token pool.
Data from analytics platform Bubblemaps showed that a wallet linked to the provider had withdrawn $2.5 million in USDC liquidity as the token peaked, while another analysis estimated that at least $3.4 million had been withdrawn. At its peak, the NYC token reached a market cap of $580 million before plummeting to less than $130 million within the first hour, prompting widespread accusations.
NYC Token Faces Rug-Pulling Accusations | Source: X/hackapreneur
Shapiro claimed in his statement that “no funds were removed from the NYC token,” and the NYC token account said at the time that it had “rebalanced liquidity” using time-weighted average price mechanisms to manage the token’s price stability. Additionally, it said funds would be gradually added to the liquidity pool to reduce the impact of initial launch volatility.
Token Performance and Proceeds
At the time of publication, the NYC token is trading at $0.138, a level it has been hovering at since falling from its launch day peak. During an interview with Fox Business, Adams said that proceeds from the NYC token would be used to raise awareness of anti-Semitism and anti-Americanism through educational campaigns. Additionally, a portion of the funds would go toward blockchain and crypto education as well as supporting scholarships for students in underserved communities, he explained.
“The NYC Token is designed to be a free, voluntary way to support educational and charitable efforts. Claims suggesting otherwise are inaccurate,” Shapiro said, adding that Adams “remains committed to responsible innovation and the use of new technologies to strengthen trust, education and shared civic values.”
For more information on the NYC token and its controversy, visit https://crypto.news/former-nyc-mayor-eric-adams-denies-role-in-nyc-token-crash-amid-rug-pull-claims/
