thecryptobasic.com
A cryptocurrency wallet associated with ex-New York City Mayor Eric Adams reportedly extracted around $1 million from a liquidity pool through a series of transactions that blockchain analysts say have not been publicly explained.
The activity took place on Monday, the same day the NYC token was publicly introduced. The development was followed by a sharp reversal in the token’s market value.
Key Data at a Glance
- A wallet tied to the NYC token deployer withdrew $2.43 million in USDC before returning $1.5 million, according to blockchain analytics.
- Approximately $932,000 in USDC remained unaccounted for following the liquidity changes, Bubblemaps reported.
- The token briefly reached a market capitalization of $600 million before falling to $110 million, based on Solscan data.
- The price declined from around $0.58 to $0.11, a drop of more than 81%, according to Solscan.
- The NYC token has a maximum supply of 1 billion tokens, per its official website.
Liquidity Activity Flagged Soon After Launch
Soon after the token went live, Bubblemaps began monitoring on-chain activity connected to its deployment. The firm reported that the token’s creator transferred 80 million NYC tokens to a wallet used to seed liquidity on a decentralized exchange.
What followed raised concerns among analysts. Bubblemaps said the wallet withdrew approximately $2.43 million in USDC while prices were near their peak. After the token had lost more than half its value, only $1.5 million in USDC was reintroduced into the liquidity pool. The remaining difference—nearly $1 million—has not been publicly accounted for.
Bubblemaps traced the activity to wallet 9Ty4M, which was reportedly used to set up one-sided liquidity pools on the Meteora platform. The firm noted that no explanation has been provided for either the timing or structure of these transactions.
High-Profile Launch Draws Immediate Attention
The liquidity movements coincided with a high-profile public rollout. Eric Adams announced the NYC token at a press conference in Times Square on Monday, instantly placing the project under public scrutiny.
During the event, Adams stated that the token would generate revenue to combat antisemitism and anti-Americanism and would help introduce children to blockchain technology. The project’s website describes the token as reflecting New York City’s values of innovation and diversity.
Rapid Surge Followed by Steep Losses
Investor response was swift following the announcement. According to Solscan, the token’s market capitalization surged rapidly, reaching nearly $600 million within a short period.
The rally proved short-lived. As liquidity was withdrawn and selling pressure intensified, the token’s price dropped sharply. As of the latest reading, the market cap had plummeted to approximately $110 million, while the token’s price had declined by more than 80% from its high.
Comparisons to Previous Political Crypto Collapses
As analysts examined the events, Bubblemaps drew comparisons between the NYC token and earlier politician-linked crypto launches. Specifically, the firm pointed to the LIBRA cryptocurrency, endorsed by Argentina’s President Javier Milei, which experienced a collapse last year.
Data from Nansen showed that only 14% of LIBRA investors made a profit, while 86% suffered losses totaling $251 million. The collapse led to asset freezes, investigations, and class-action lawsuits.
U.S. court filings later alleged that similar launch patterns were repeated across multiple tokens. Those filings named Benjamin Chow, a co-founder of Meteora, as being involved in several projects, including LIBRA and MELANIA.
Bubblemaps also reported wallet connections between the LIBRA and MELANIA tokens, suggesting a recurring structure rather than isolated incidents.
Unanswered Questions Remain
Bubblemaps says the unexplained liquidity movements warrant closer examination, particularly given the project’s public profile and political associations.
As attention remains focused on the token’s launch and aftermath, the episode highlights the ongoing risks associated with politically branded cryptocurrencies, where visibility can drive rapid investment before key questions are resolved.