NYC Token plummets 80%, evaporating $400 million! Former New York City Mayor denies withdrawal allegations

NYC Token plummeted 80% after launch, with a market cap loss of over $400 million. Analysts accuse former New York City Mayor Adams’ team of withdrawing liquidity to scam $3.4 million; a spokesperson denies this but the team claims to have “rebalanced liquidity,” which is contradictory. Adams states that the proceeds will fund education and scholarships. The token is currently trading at $0.133.

One-Hour 80% Crash Fraud Allegation

NYC Token was launched on Monday but crashed 80% within the first hour. Cryptocurrency analysts claim Adams’ team withdrew liquidity and scammed investors out of over $3.4 million. Such a sharp price collapse is often associated with “Rug Pull” scams in crypto—where project teams immediately withdraw funds from liquidity pools after token launch, leaving investors unable to sell and causing the price to instantly drop to zero.

Data from DEXScreener shows that the Solana-based NYC Token is now trading at $0.133, hovering near that level since dropping from $0.475 shortly after launch. From its peak to the current price, it has fallen by 72%, and from the initial high, the actual decline could be even greater. Since the early peak of NYC Token’s market cap, it has evaporated over $400 million.

This speed and magnitude of collapse are extremely rare, even in the highly volatile crypto market. Typically, new tokens experience a speculative rise followed by a gradual decline. But NYC Token went from frenzy to collapse within an hour, a pattern highly similar to typical scam tokens. On-chain data tracking shows that large amounts of liquidity were removed at the peak, preventing subsequent buyers from selling at reasonable prices.

Crypto communities’ doubts about Adams are not only based on price movements but also on his political identity. As a former NYC mayor, Adams publicly supported cryptocurrencies, even announcing in 2022 that he would receive his first three months’ salary in Bitcoin. This high-profile crypto-friendly stance gave NYC Token a strong political undertone. When the token plummeted 80% within an hour, critics saw it as a typical case of politicians abusing public trust for financial manipulation.

Spokesperson Denies Contradiction with Team’s Statement

(Source: Former NYC Mayor Adams)

Adams’ spokesperson Todd Shapiro issued a statement on X platform on Wednesday refuting the allegations. “It needs to be absolutely clarified: Eric Adams did not transfer investor funds. Eric Adams did not profit from the NYC Token issuance. No funds have been removed from NYC Token,” Shapiro said. He emphasized that these accusations are “false and unsupported by evidence,” attributing the price crash to “market volatility.”

Three Major Contradictions in Both Sides’ Statements

Fact of Funds Removal: Shapiro claims no funds were removed, but the NYC Token team previously stated they “rebalanced liquidity.”

Market Volatility Justification: An 80% drop within an hour far exceeds normal market fluctuations, yet the official explanation blames “market natural adjustment.”

Timing of Liquidity Pool Capital Increase: The team claims to have added funds, but on-chain data shows liquidity significantly decreased at critical moments.

However, Shapiro states “no funds were removed from NYC Token,” which seems to contradict previous statements from the NYC Token X account. That statement claimed they “rebalanced liquidity” to meet token issuance demands. The company also said they added funds to the NYC Token liquidity pool. This inconsistency raises further questions—if no funds were actually removed, why was there a need to “rebalance” and “add funds”?

“He was involved with no personal or economic gain,” Shapiro emphasized. This statement attempts to dissociate Adams from the token’s economic interests, implying he was merely a nominal supporter rather than a direct beneficiary. However, in crypto markets, “nominal support” itself can carry significant market value. Adams’ political status and public recognition initially attracted attention and capital inflow to NYC Token. Even if he personally did not profit directly, leveraging celebrity influence is inherently controversial.

Charitable Promises Under Crisis of Credibility

In an interview with Fox Business, Adams explained that the proceeds from NYC Token would fund nonprofit organizations, raising awareness about anti-Semitism and anti-Americanism through educational programs. The former NYC mayor who supported cryptocurrencies said the proceeds would also fund scholarships for students in underserved NYC communities.

Shapiro reiterated in his statement: “Mr. Adams has always been committed to responsible innovation, leveraging emerging technologies to strengthen trust, education, and shared civic values.” Despite strong opposition, this controversial token issuance did not alter Adams’ support for these causes.

However, such charitable promises seem hollow after the token’s collapse. Critics point out that if it was truly for charity, why not raise funds through traditional nonprofits instead of highly speculative crypto tokens? More importantly, where did the hundreds of millions of dollars lost by investors go? If not removed, why can’t the token price recover?

Public sentiment against “celebrity tokens” is growing. From the 2024 Trump family meme coins TRUMP and MELANIA to tokens launched by sports stars and influencers, these projects often exploit celebrity effects to quickly attract funds, then blame “market volatility” when prices crash. The NYC Token case again demonstrates the huge conflict of interest risks when politicians promote crypto tokens.

$400 Million Evaporated Victim Dilemma

Since reaching an early peak, NYC Token’s market cap has evaporated over $400 million. This figure represents not only a shrinking market cap but also real financial losses for investors. Many bought NYC Token trusting Adams’ political reputation, believing a project supported by a former mayor should be fundamentally reliable.

Currently, the token trades at $0.133, down 72% from the high of $0.475. For investors who bought at the peak, their capital has already lost over 70%. Worse, due to insufficient liquidity, even those wanting to cut losses may face huge slippage. This predicament is a typical “liquidity trap”—the token price appears to still exist but cannot be sold at that price in reality.

Adams’ team’s explanation of “market volatility” is clearly unconvincing to victims. Normal market fluctuations should be bidirectional, with both rises and falls, but NYC Token shows a one-way collapse that cannot recover. This pattern is entirely different from natural market adjustments, resembling structural flaws or manipulation. For heavily damaged investors, regardless of whether Adams personally profited, promoting a project that ultimately causes investor losses with his political influence raises serious moral responsibility.