Investors express outrage at ex-New York City Mayor Eric Adams’s cryptocurrency debut: ‘This is clearly a scam’

Eric Adams Unveils NYC Token, Faces Immediate Controversy

On Monday evening, just hours after introducing his “NYC Token” at a Times Square press event, former New York City Mayor Eric Adams officially launched his own cryptocurrency. Although Adams vaguely claimed the token would help fight antisemitism, he offered few concrete details about its purpose. Despite the uncertainty, investors rushed in, briefly pushing the token’s market value to $600 million before it rapidly collapsed.

Crypto experts quickly labeled the NYC Token as a likely example of a “rugpull”—a scheme where a new cryptocurrency is launched, only for its creators to swiftly cash out, leaving investors with worthless coins. Nicolas Vaiman, who leads the crypto analytics firm Bubblemaps, and blockchain data reviewed by Fortune, suggest that the developer behind the token may have walked away with approximately $1 million in profits.

It remains unknown whether Adams personally benefited from the proceeds. The incident drew comparisons to other high-profile celebrity cryptocurrency mishaps, such as Argentine President Javier Milei’s Libra controversy in early 2025 and Haliey ‘Hawk Tuah girl’ Welch’s unsuccessful token launch in late 2024. “This is such an obvious rug,” Vaiman commented.

Adams’s team did not respond to requests for comment.

Inside the $NYC Token Launch

During his Monday morning announcement in Times Square, Adams provided little information about the NYC Token project. He declined to name any collaborators and directed attention to a website that lacked working features. Adams claimed the initiative would educate New York’s youth about blockchain and support programs aimed at combating antisemitism.

Adams has long been a vocal supporter of cryptocurrency. He began his mayoral tenure by pledging to accept his first three paychecks in Bitcoin and was known to associate with Brock Pierce, a former child actor turned blockchain entrepreneur involved with projects like Tether.

Eddie Cullen, a former candidate for NYC mayor and founder of the crypto firm Crescite, stated that he began discussing ideas for a city token with Adams’s associates around June 2025. A press release from his political action committee, Innovate NY, outlined plans for a trademarked NYC Token initiative to use blockchain for generating new city revenue. Cullen also shared a detailed proposal with Fortune that he claims was sent to Adams’s team.

Cullen said he was blindsided by Adams’s announcement and intends to issue a cease-and-desist letter. “I’m going to hold him accountable,” Cullen told Fortune. “I’m shocked he would move forward like this.”

Questions Surrounding the Token’s Origins

The full list of individuals involved in launching the NYC Token remains unclear. A new website for the project names C18 Digital as a partner. Records from Delaware show that C18 Digital, a limited liability company, was established on December 30, 2025.

The confusion over the token’s beginnings is only part of the story. Typically, when a new cryptocurrency is introduced, its creators provide liquidity by pairing it with established assets like USDC or Solana, enabling users to buy and sell the token. However, the NYC Token used a one-sided liquidity pool containing only the token itself. As buyers added USDC to the pool, a developer-linked wallet withdrew $2.5 million in USDC. Vaiman explained that this method is harder to detect because it doesn’t involve directly selling the token. A similar tactic was used by Hayden Davis in the Argentina Libra scandal, where investors lost $250 million.

After widespread reports of a rugpull circulated on X Monday night, a new account linked to the token claimed that additional funds had been added to the liquidity pool. Nevertheless, Vaiman estimates that the developers still managed to secure about $1 million in profit.

“I honestly can’t explain their motives,” Vaiman said. “Is it just outright fraud? Maybe I’m too optimistic, but perhaps that’s exactly what happened.”

This article was first published on Fortune.com.