Former New York City Mayor Eric Adams is facing scrutiny after the memecoin he promoted, NYC Token, saw a major liquidity withdrawal soon after launch. On-chain data showed a wallet linked to the token deployer pulled about $2.5 million in USDC near the market peak. After the token had already dropped by more than 60%, roughly $1.5 million was added back. Tracking cited in the report showed about $900,000 in USDC was not returned.
The token was introduced at a Times Square event on Monday, where Adams presented it as a crypto project tied to civic causes. Shortly after going live, NYC Token surged to a $580 million market capitalization, suggesting intense demand from retail traders and likely launch-sniping bots. Within hours, the liquidity movements shifted attention from hype to the way the token had been set up and managed.
On-chain analysts highlighted withdrawals near the top
Analysis shared by Bubblemaps and other researchers pointed to a wallet connected to the deployer as the source of the large USDC withdrawal. That finding drove accusations of a possible rug pull, a term used when liquidity is removed from a token pool and holders are left with limited exit options unless they accept steep losses.
Adams rejected that characterization. In an emailed statement sent Tuesday morning, he said demand after launch was heavy and that the project’s market maker adjusted liquidity in an effort to keep trading functioning smoothly. He also said the team had not sold any tokens and was subject to lockups and transfer restrictions, adding that the project was focused on transparency and long-term building.
Supply structure disclosed, governance details remain thin
The token’s website says NYC Token has a total supply of 1 billion coins, with 70% assigned to a reserve that is excluded from circulating supply. Adams said the token would support efforts against antisemitism and “anti-Americanism” through an unnamed nonprofit. He did not identify co-founders or explain how the funds would be managed.
During an interview with Fox host Maria Bartiromo, Adams gave vague answers when asked about the token’s use case. His crypto ties have long been public: while serving as mayor, he repeatedly said he wanted New York to become the crypto capital of the world and took his first three paychecks in bitcoin through Coinbase. That history helped earn him the nickname “Bitcoin mayor.” The launch of NYC Token, and the liquidity activity that followed, has now put that reputation under sharper examination.