Former 'bitcoin mayor' Eric Adams accused of $3 million rugpull following launch of NYC Token

Eric Adams Faces Criticism Over Promoted Memecoin

Eric Adams, the former mayor of New York City, is under fire from cryptocurrency traders after a memecoin he endorsed experienced a sudden and significant drop in liquidity soon after its debut.

While serving as mayor, Adams was a vocal supporter of digital currencies, frequently expressing his ambition to establish New York as a global hub for crypto innovation. He famously accepted his first three paychecks in bitcoin through Coinbase, earning him the nickname "Bitcoin mayor" among crypto enthusiasts.

On Monday, Adams introduced the “NYC Token” at a press conference in Times Square, describing it as a cryptocurrency initiative aimed at supporting civic projects. The token quickly soared to a market cap of $580 million, reflecting intense interest from individual investors and market observers.

However, within just a few hours, blockchain data revealed substantial liquidity shifts that cast doubt on the token’s management and structure.

According to analytics from Bubblemaps and other blockchain researchers, a wallet associated with the token’s creator withdrew approximately $2.5 million in USDC liquidity near the token’s price peak.

After the token’s value had already plummeted by over 60%, about $1.5 million was re-injected into the liquidity pool. On-chain records indicate that around $900,000 in USDC was not returned.

These actions sparked allegations of a potential rug pull—a scenario where liquidity is abruptly removed, leaving investors unable to sell without incurring heavy losses.

The official website for the token claims a total supply of 1 billion coins, with 70% held in a reserve that is not part of the circulating supply.

Adams stated that proceeds from the token would be used to support initiatives against antisemitism and “anti-Americanism” via an unnamed nonprofit organization. He did not reveal the names of any co-founders or provide specifics on how the funds would be handled.

In an interview with Fox’s Maria Bartiromo, Adams gave unclear and unusual responses when asked about the token’s intended purpose.

He remarked, “Consider how Walmart utilizes blockchain technology for tracking food and inventory in their stores. It’s transparent and accessible to everyone. With our New York City Coin, the funds generated will be directed toward addressing the alarming rise in antisemitism both nationally and globally, as well as combating growing anti-American sentiment.”

During the interview, Adams repeatedly referred to blockchain as “block change technology,” among other verbal missteps.

It’s important to note that New York City Coin and NYCToken are separate ventures. The former, launched by CityCoins early in Adams’ mayoral term, was removed from major exchanges in 2023 due to insufficient liquidity.