Former New York Mayor Eric Adams has refuted claims that he moved money or profited from the NYC token after it fell by more than 80% within the first hour of its launch.
Summary
- Eric Adams has denied profiting from the NYC token after its value fell by more than 80% shortly after its launch.
- A spokesperson attributed the token’s crash to market volatility and says Adams did not move any investor funds.
“Recent reports alleging that Eric Adams withdrew funds from the NYC Token are false and not supported by any evidence,” Todd Shapiro, a spokesperson for Adams, said in a Jan. 14 statement about X.
Shapiro attributed the token’s sharp decline to market volatility, while noting that the former mayor’s involvement in the project was not “intended for personal or financial gain.”
Adams launched the Solana-based token on Tuesday, touting it as a means to combat rising hate and inspire the next wave of innovation in the city.
However, the token’s launch quickly became mired in controversy after some members of the crypto community flagged on-chain data indicating millions in liquidity had leaked from the token pool.
Data from analytics platform Bubblemaps showed that a wallet linked to the implementer had removed $2.5 million in USDC liquidity when the token was trading at its peak, while another analysis estimated that at least $3.4 million had been removed.
At its peak, the NYC token reached a market cap of $580 million, before falling to less than $130 million within the first hour, leading to widespread accusations of ‘rug pull’.
Meanwhile, Shapiro’s statement claims that “no funds have been removed from the NYC token,” the NYC token account said at the time that it was “rebalancing liquidity” using time-weighted average price mechanisms to manage the token’s price stability.
Further, it said funds were gradually being added to the liquidity pool to reduce the impact of initial volatility at launch.
At the time of publication, the NYC token is trading at $0.138, a level it has been hovering around since falling from its launch day peak.
During a Fox Business interview, Adams said proceeds from the NYC token would be used to raise awareness about anti-Semitism and anti-Americanism through educational campaigns. Furthermore, some of the money would go towards blockchain and crypto education, as well as supporting scholarships for students in underserved communities, he explained.
“The NYC Token is designed as a free, voluntary way to support education and nonprofit efforts. Claims that suggest otherwise are inaccurate,” Shapiro said, adding that Adams “remains committed to responsible innovation and to using emerging technologies to strengthen trust, education and shared civic values.”
