coindesk.com
Former New York City mayor Eric Adams’ team is pushing back against allegations that he profited from or moved funds tied to the newly launched NYC Token, after on-chain data showed a sharp liquidity withdrawal shortly after the token went live.
“To be absolutely clear: Eric Adams did not move investor funds. Eric Adams did not profit from the launch of the NYC Token. No funds were removed from the NYC Token," a a statement shared with CoinDesk over email late Wednesday read.
The denial follows CoinDesk’s reporting earlier this week that a wallet linked to the token’s deployer removed roughly $3 million in USDC liquidity near the market’s peak after the Solana-based token briefly surged to a market capitalization of about $580 million — causing prices to drop nearly 80% swiftly.
On-chain data reviewed by CoinDesk showed that about $1.5 million was later added back after the token’s price had already fallen more than 60%, while roughly $900,000 was not returned. The moves triggered accusations of a potential rug pull, a term used when liquidity is withdrawn from a token, leaving traders unable to exit positions without steep losses.
Earlier statements from the NYC Token’s social media account said the team had “rebalanced the liquidity” in response to heavy demand at launch and later added funds back to the pool.
The token has not recovered meaningfully since the initial collapse, however, Data from DEXScreener as of Asia morning hours Thursday shows NYC Token trading around $0.13, down sharply from highs near $0.47 shortly after launch. More than $400 million in market value has been wiped out since the token’s peak.
Adams has pitched the NYC Token as a project tied to civic causes. In interviews, he said proceeds would be directed toward education programs and scholarships for students in underserved communities, as well as efforts to combat antisemitism and anti-Americanism. Details on how funds would be managed or distributed have not been disclosed.
The controversy has revived scrutiny of politically branded tokens, which often attract intense early demand before suffering sharp reversals tied to thin liquidity and concentrated control.
For now, Adams’ team continues to deny wrongdoing, while the on-chain record and unanswered questions around the token’s structure remain under close watch.