Former NYC Mayor Eric Adams Launched A New Crypto Token. Was It A Scam?
Former New York City Mayor Eric Adams launched a new cryptocurrency called NYC Token on January 12. The token immediately spiked and then collapsed after an account linked to the token withdrew $2.5 million.
Adams, a longtime crypto enthusiast, now faces accusations that the launch was a “rug pull”: a common crypto scam where insiders hype a token and then quietly cash out.
NYC Token’s Launch And Collapse
Within minutes of going live, the token, built on the Solana blockchain, reached a market value of $600 million.
The New York Times reports that within minutes of trading opening, about $2.5 million was withdrawn from an account linked to the token’s launch. That move appears to have helped trigger the crash. Roughly $1.5 million was returned the next day, but $1 million is still not accounted for.
The reason for the withdrawals remains unclear. An unsigned statement from “NYC Token” statement shared with the Times said the project’s market maker moved funds to “keep trading running smoothly,” and that the group “has not withdrawn any money from the account.”
Transparency Concerns
Adams described broad goals for the token, saying it would raise money to fight antisemitism and anti-Americanism and teach children about blockchain technology. But, during the press release, he offered no clear plan for how the money would be used, no named partners, and no timeline for delivering on those goals. The token’s website offers similarly vague language.
Confusion over who really controls the NYC Token has added to the skepticism. Fortune reported that Eddie Cullen, a former mayoral candidate and crypto entrepreneur, said he had previously discussed launching an NYC token with Adams’ team and was surprised by this rollout. He said he planned to send a cease-and-desist letter.
Image credit: New York Post
