- Eric Adams denied claims that he withdrew liquidity or profited from the NYC Token after its launch.
- The NYC Token team confirmed liquidity was rebalanced, while on-chain data showed a $2.5 million cash-out.
- Industry figures criticized celebrity token launches as scrutiny around NYC Token activity increased.
Former New York City Mayor Eric Adams is facing renewed scrutiny following claims that liquidity was withdrawn from the NYC Token shortly after its public launch, prompting allegations of a rug pull among some investors.
The claims surfaced under Adams’ official X account, where a community note alleged that the former mayor personally removed funds from the project. Adams’ spokesperson has denied the allegations, stating that no investor funds were moved and that Adams did not profit from the token.
Todd Shapiro, a spokesperson for Adams, issued a public statement rejecting reports that Adams withdrew money from the NYC Token. According to the statement, Adams did not move investor funds, did not profit from the launch, and no funds were removed from the token. Shapiro said Adams’ involvement was limited to publicly supporting the initiative, which he described as focused on blockchain education, nonprofit funding, and combating antisemitism and anti-Americanism.
The statement added that the NYC Token was designed as a voluntary mechanism to support educational and civic initiatives and emphasized that market volatility following launch was not unusual for newly issued digital assets.
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Liquidity Changes and On-Chain Activity
Concerns intensified after the official NYC Token account acknowledged that liquidity had been removed from the pool shortly after launch. The account said the action was taken to rebalance liquidity due to demand and confirmed that additional funds were later added back to the pool.
On-chain analytics platform Bubblemaps reported that a wallet connected to the NYC Token deployer cashed out approximately $2.5 million near the token’s price peak. Separately, X user AshCrypto said the token reached a market capitalization of $500 million before falling more than 80% within a short period.
Industry Reaction and Public Criticism
The situation also drew commentary from Hayden Adams, founder of Uniswap, who criticized the broader trend of high-profile figures launching tokens. Adams argued that public figures can use blockchain technology without harming investors and suggested that legitimate projects could generate greater long-term value.
Eric Adams announced the NYC Token on January 12 at a press conference in Times Square. In an interview with Fox News, Adams said proceeds would support antisemitism education, blockchain education for New York City youth, and scholarships for students in underserved communities.
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