Eric Adams’ NYC Token Collapses 80% Amid $2.5M Liquidity Drain Allegations
On-chain data shows $2.5M in liquidity was pulled from Eric Adams’ NYC Token at its peak, crashing the price 80% despite his denial of wrongdoing.
Former New York City Mayor Eric Adams is facing explosive allegations of a “rug pull” after his newly launched NYC Token ($NYC) crashed over 80% minutes after its debut. While Adams denies personal profit, on-chain data reveals a wallet linked to the project’s deployer drained millions in liquidity at the token’s absolute peak.
The $600 Million Flash Crash
The Solana-based token launched Monday with a narrative of funding civic causes and combating “anti-Americanism.” Speculators drove the market cap to a staggering $580 million before the floor fell out. The catalyst? A sudden liquidity removal that shattered investor confidence.
Blockchain analytics firm Bubblemaps flagged the critical movement: a wallet connected to the token’s deployer removed approximately $2.5 million in USDC just as prices crested. Although roughly $1.5 million was returned to the pool after the crash, nearly $932,000 remains unaccounted for.
“A wallet connected to the NYC Token deployer removed approximately $2.5 million in USDC from the liquidity pool when the token was near its peak valuation,” Bubblemaps Analysis
“Liquidity Rebalancing” or Exit Scam?
The project’s official channels attempted to frame the withdrawal as a technical necessity, claiming the team “rebalanced the liquidity” using a Time-Weighted Average Price (TWAP) mechanism to stabilize the asset. Adams’ spokesperson, Todd Shapiro, issued a stark denial of any wrongdoing, stating Adams “did not move investor funds” and attributing the volatility to standard market behavior.
Market observers aren’t buying it. The “rebalancing” occurred precisely when retail buy pressure was highest, a hallmark of predatory launches. The token currently trades around $0.13, leaving late entrants with massive realized losses.
Trademark Wars & Legal Exposure
The chaos extends beyond the charts. Tech entrepreneur Edward Cullen alleges he pitched the “NYC Token” concept to Adams in June and holds the trademark. This dispute adds a layer of legal liability to an already precarious situation. With the token down from its highs and nearly $1 million missing from the liquidity pool, the gap between Adams’ civic claims and the on-chain reality is widening.
