NYC Token Crash: Allegations of Rug Pull After $2.5 Million Liquidity Withdrawal

Former New York City Mayor Eric Adams is under intense scrutiny following the crash of his newly introduced cryptocurrency, the NYC Token, shortly after its launch on Monday. The token's value initially reached a market cap of $580 million but subsequently plummeted to around $133 million.

Key Takeaways:

Former NYC Mayor Eric Adams is facing criticism after the NYC Token's dramatic price drop shortly after its launch.
The token’s peak market cap of $580 million fell to approximately $133 million due to allegations of a sell-off by a development team member.
Approximately $900,000 of the $2.5 million liquidity withdrawn remains unreturned, raising suspicions of a rug pull.
Adams promised that revenues would benefit nonprofit organizations and educational efforts related to blockchain technology.
The NYC Token team maintains their commitment to the project despite ongoing concerns about its launch and liquidity management.

NYC Token

Eric Adams Faces Backlash

In a promotional video, Adams stated, “We’re about to change the game. This thing is about to take off like crazy.” Unfortunately, the enthusiasm quickly faded when evidence emerged that the token's significant decline was linked to a large sell-off involving a user connected to the NYC Token's development team.

Bubblemaps, a blockchain analysis platform, uncovered troubling activity related to the NYC Token. Notably, a wallet tied to the token's deployer withdrew roughly $2.5 million in liquidity at the token's peak.

While about $1.5 million was returned after the token's value dropped by 60%, approximately $900,000 is still unreturned. This situation has led users on X (formerly Twitter) to accuse Adams of orchestrating a rug pull in the cryptocurrency space.

NYC Token Crash NYC Token’s crash following its Monday launch. Source: Bubblemaps on X

Adams, an enthusiastic supporter of cryptocurrency, mentioned at a Monday event that some proceeds from the NYC Token would be directed towards nonprofits that combat antisemitism and “anti-Americanism.” He also indicated plans to utilize profits to “educate our children about embracing blockchain technology.”

The NYC Token’s official website claims there is a total supply of one billion tokens, with 10 percent of profits allocated to the team's activities, although the identities of those involved remain undisclosed.

Response from the NYC Token Team

In light of the backlash, the NYC Token team expressed acknowledgment of the liquidity withdrawal, stating, “Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity.” They asserted, “We’re in it for the long haul!”

However, uncertainty looms over the specifics of the token’s launch, particularly concerning a newly listed entity called C18 Digital, associated with the project. Delaware corporate records indicate that C18 Digital was incorporated on December 30, 2025.

Typically, cryptocurrency launches involve developers creating a liquidity pool with various assets, such as Circle’s USDC or Solana (SOL), to facilitate buying and selling of the new token. The NYC Token took an unconventional approach by establishing a one-sided liquidity pool consisting solely of the token itself.

As users started purchasing the token, they contributed liquidity into the pool using USDC, which was then followed by the significant withdrawal of $2.5 million. Analyst Vaiman highlighted that this tactic can be more subtle than direct token sell-offs.

In the wake of reports alleging a rug pull, a new account linked to the NYC Token announced that additional funds had been added to the liquidity pool.

Crypto Market Surge The daily chart shows the total crypto market cap’s surge on Tuesday. Source: TOTAL on TradingView.com