The memecoin $NYC, promoted by Eric Adams, surged almost immediately after launch and briefly pushed its market value close to $600 million. The rally was fast and crowded. Then on-chain data showed a large amount of liquidity leaving the trading pool near the top, and the mood in the market changed within minutes.
The token then collapsed from about $0.58 to nearly $0.11, a drop of more than 80% in a short span. That move drove rug pull allegations across crypto circles. Whether that label can be proven is a separate question, but the trading outcome was clear: the price broke down and holders were left with steep losses.
About $3.18 Million in USDC Was Removed Near the Peak
Blockchain tracker Lookonchain said a wallet linked to the token deployer removed roughly $3.18 million in USDC liquidity around the price peak. In token markets, liquidity is what allows traders to enter and exit positions without extreme slippage. Once that support disappears, even routine selling can send the chart sharply lower.
That is the center of the controversy. After traders spotted the liquidity move on-chain, selling accelerated and confidence vanished. Some market participants said they lost hundreds of thousands of dollars within minutes.
Supply Concentration Added to the Pressure
Questions also focused on how the token supply was structured. According to the report, about 70% of the total 1 billion NYC tokens were held in a reserve wallet. A supply profile like that can give a small number of wallets outsized influence over price action.
Traders usually view broad distribution or clear lockup terms as a sign of stronger market structure. Those safeguards were not visible here, and the concentration issue added another layer of concern around the token.
Project Details Were Not Clearly Explained
Eric Adams said the token would support causes including fighting antisemitism and anti-Americanism, but the public details remained limited. The report said there was no named nonprofit, no explanation of how funds would be managed, and no clear disclosure on who controlled the wallets tied to the project.
His comments about blockchain and the token during interviews were also described as unclear. In crypto markets, public claims matter less than verifiable wallet control, fund flows, and token distribution.
Rug Pull Claim Remains an Allegation
From a legal standpoint, calling the event a confirmed rug pull is still premature because intent takes time to establish. On-chain, though, the sequence is already visible: liquidity was removed, the price crashed, money was lost, and trust broke down.
That sequence is why the token became a flashpoint so quickly. For traders, celebrity attention is not a substitute for due diligence, and wallet concentration plus liquidity movements often reveal more than promotional messaging.