Former New York City Mayor Eric Adams launched a new memecoin called NYC Token this week, promoting it as a tool to confront antisemitism and anti-Americanism — but the asset swiftly collapsed in value and now faces accusations of a cash-grab “rug pull.” The controversial crypto project briefly hit a $580 million market valuation before losing the vast majority of its value, sparking sharp investor backlash and allegations of financial misconduct.
Adams debuted NYC Token in a video and social posts claiming it was “built to fight the rapid spread of antisemitism and anti-Americanism” and that its transparent blockchain would allow public oversight. Early trading saw the token peak before plunging as on-chain data showed a linked wallet liquidating roughly $2.5 million worth of the coin at its high point, leading to a collapse in market confidence.
Critics say the sequence of events resembles a rug pull, a crypto scheme in which promoters leverage celebrity status to drive investment and then withdraw funds, leaving ordinary investors holding losses. Adams’ camp denied any wrongdoing, asserting that a market maker adjusted liquidity for trading stability and that the team remains locked up and committed for the long term. Adams’ statement insisted no team member sold tokens and maintained there is transparency and intention to build lasting value.
Blockchain analytics noted the project added about $1.5 million back into the liquidity pool after the downturn, but the token’s price had already fallen nearly 60 percent when the moves occurred. Despite the refunds, traders remain wary and the coin has struggled to regain trust among investors.
In media remarks, Adams described blockchain as a “transparent” technology and said proceeds from the meme token were intended for three mission-driven initiatives: crypto/blockchain education programs, scholarships for underprivileged students, and efforts to counter antisemitism and anti-Americanism. The specifics of these programs and how funds would be allocated remain unclear.
Adams’ embrace of cryptocurrency dates back to his time as mayor, when he championed digital assets and even accepted his first paychecks in bitcoin. Yet the rapid crash of NYC Token underscores the risks of politicized crypto ventures and highlights ongoing concerns about transparency and investor protections in the digital asset space.
