Eric Adams’ NYC Token Crashes After $700M Surge, Raising Rug Pull Fears

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The fast-growing crossover between politics and crypto speculation has taken another turn after former New York City Mayor Eric Adams announced the launch of a new meme coin, dubbed the NYC Token. Following in the footsteps of politically themed tokens like TRUMP and MELANIA, the project immediately drew attention from both traders and media, placing Adams firmly in the emerging political meme coin space.

The token was unveiled during a press event in Times Square, where Adams framed it as more than a speculative play. He described NYC Token as a “commemorative” crypto asset aimed at countering rising anti-American sentiment and antisemitism, while also supporting blockchain education initiatives for young people.

Purpose-Driven Messaging, Missing Details

According to Adams, funds raised through the token would be directed toward youth-focused programs, including scholarships for underserved students and education around blockchain and emerging technologies. The project reportedly has a total supply of one billion tokens, with 80 million available at launch, and plans to increase the circulating supply to 300 million over time.

Despite this socially focused narrative, concerns quickly emerged around transparency. Observers noted that the project’s website lacks basic details such as a whitepaper, technical roadmap, or information about development partners. This absence has fueled skepticism, particularly among experienced crypto participants who see transparency as a baseline requirement.

Wild Price Swings Raise Red Flags

Market activity around the NYC Token intensified scrutiny further. Shortly after launch, the Solana-based meme coin surged to a market capitalization of nearly $580 million and briefly peaked at around $730 million. That rally was followed by a sharp crash of more than 80%, sending the market cap down to roughly $90 million before rebounding above $110 million.

On-chain analysts flagged unusual liquidity behavior during this period. Blockchain analytics firm Bubblemaps reported that a wallet linked to the token’s deployer removed roughly $2.5 million in USDC liquidity near the peak, later adding back about $1.5 million after prices had already fallen sharply. These moves sparked accusations of a potential rug pull, though no official determination has been made.

Centralization and Authority Concerns

Crypto analyst AshRobin added to the criticism, pointing out that the token launched with a roughly $100 million market cap but had only about 1,200 holders and a heavily bundled supply. He also questioned Adams’ authority to brand the project as an “official” New York City memecoin, noting that Adams no longer holds public office.

Politics, Hype, and Risk Intersect

The NYC Token now joins a growing list of political meme coins that blend celebrity influence with speculative hype. While such projects can attract rapid inflows, the NYC Token’s volatility, centralization concerns, and unclear structure highlight the risks facing retail investors. As political meme coins multiply, scrutiny around legitimacy, transparency, and on-chain behavior is likely to grow just as fast.