Former New York City Mayor Eric Adams is facing accusations of a potential rug pull after his newly launched NYC Token experienced significant liquidity withdrawals shortly after its debut.
Adams, who earned the nickname “Bitcoin mayor” during his tenure for promoting cryptocurrency adoption in New York City, unveiled the NYC Token at a Times Square press event on Monday. The token reached a $580 million market capitalization within hours of launch, attracting substantial retail interest.
On-chain data revealed problematic liquidity movements that raised questions about the token’s structure and management. Analytics firms, including Bubblemaps identified a wallet connected to the token’s deployer that removed approximately $2.5 million in USDC liquidity near the market’s peak.
The withdrawal occurred as the token’s price fell more than 60% from its highs. About $1.5 million was later added back to liquidity pools, but approximately $900,000 in USDC was not returned, according to on-chain tracking.
See also: 3 Ways to Spot and Avoid Crypto Scams in 2026
A rugpull occurs when liquidity is withdrawn from a token, leaving traders unable to exit positions without incurring substantial losses. The term describes a common exit scam in the cryptocurrency market.
Adams promoted the NYC Token on his personal social media accounts and during an interview with Fox’s Maria Bartiromo. He stated that proceeds would fund efforts to combat antisemitism and “anti-Americanism” through an unnamed nonprofit organization.
The token’s website indicates a total supply of 1 billion coins, with 70% allocated to a reserve excluded from circulating supply. Adams did not disclose the identities of co-founders or provide specific details regarding fund management.
During his television interview, Adams offered vague explanations of the token’s use case. He drew comparisons to Walmart’s blockchain tracking system for food and goods, though he did not clearly explain how the NYC Token functioned similarly.
Adams also referred to blockchain technology as “block change technology” twice during the interview, and his responses to questions about the token’s purpose were characterized as unclear by market observers.
It is important to note that NYC Token and NYCToken are separate projects. The original New York City Coin was launched by CityCoins during Adams’ early tenure as mayor and was delisted by major exchanges in 2023 due to insufficient liquidity.
The allegations come as cryptocurrency wallet exploits and token scams continue to pose significant risks to digital asset investors. Memecoin launches have become increasingly scrutinized following numerous high-profile rugpulls in the cryptocurrency market.
Adams has not publicly responded to the rugpull accusations as of publication time. Binance and other major exchanges have not listed the NYC Token.
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