NYC Token, promoted by former mayor Eric Adams, crashed 80% minutes after launch. Is this the latest celebrity rug pull or just a failed experiment?NYC Token, promoted by former mayor Eric Adams, crashed 80% minutes after launch. Is this the latest celebrity rug pull or just a failed experiment?
Is NYC Token a Rug Pull? The Rise and Fall of Eric Adams’ Crypto Project
The cryptocurrency market is no stranger to volatility, but the recent launch of the NYC Token ($NYC) has raised serious red flags for investors. Promoted by the former Mayor of New York City, Eric Adams, the project was marketed as a revolutionary tool to fight antisemitism and fund blockchain education. However, the reality on the charts tells a much darker story—one that mirrors a classic pump and dump scheme.
The Aggressive Pump: "Taking Off Like Crazy"
On January 12, 2026, Eric Adams took to social media and Times Square to announce the launch of the NYC Token. In a high-energy video recorded from the back of a taxi, Adams claimed the token would "change the game" and predicted it would "take off like crazy."
This celebrity endorsement, coupled with a narrative focused on social causes, created an immediate surge in demand. Within minutes of its initial offering, the market capitalization of NYC Token skyrocketed to a staggering $580 million. Investors, driven by FOMO (Fear Of Missing Out), flocked to decentralized exchanges to grab a piece of the "digital heartbeat of New York."
The Sudden Dump: A Textbook Rug Pull?
The excitement was short-lived. As shown in the trading charts, the price reached its peak only to plummet by 80% within the next 30 minutes. On-chain data revealed that the crash wasn't just a natural market correction. Blockchain analytics platform Bubblemaps flagged suspicious activity: a digital wallet connected to the token's development team withdrew approximately $2.5 million in liquidity at the exact moment the price peaked.
In the world of decentralized finance, this is often referred to as a rug pull. By removing the liquidity—the pool of funds that allows users to buy and sell—the developers effectively "pulled the rug" from under the investors, leaving them with tokens that were nearly impossible to sell at their previous value.
"This is such an obvious rug," noted Nicolas Vaiman, CEO of Bubblemaps, in an interview with Fortune.
Red Flags and Lack of Transparency
While the NYC Token team claimed the withdrawal was a "liquidity rebalancing" to handle high demand, experts remain skeptical. Legitimate projects typically perform rebalancing gradually. Furthermore, the project's structure raised several alarms:
- Concentrated Ownership: Reports suggest that the top 10 holders controlled nearly 99% of the total supply.
- Lack of Identity: Despite the high-profile endorsement, the actual developers behind "C18 Digital" (the entity associated with the project) remained largely anonymous.
- One-Sided Liquidity: The pool was initially set up with only $NYC tokens, forcing users to provide all the valuable liquidity (in USDC or SOL) themselves.
How to Protect Your Portfolio
The NYC Token saga serves as a harsh reminder of the risks associated with celebrity-backed memecoins. Before jumping into the next "big thing," it is crucial to perform due diligence.
- Research the Liquidity: Use tools to see if the liquidity is locked or if the developers can withdraw it at any time.
- Compare Platforms: Always use reputable services. You can check our Exchange Comparison to find safer places to trade.
- Secure Your Assets: If you do trade high-risk tokens, ensure your main holdings are safe in Hardware Wallets.
- Monitor Prices: Keep a close eye on the latest Bitcoin (BTC) prices and market trends on CryptoTicker News to gauge overall market health.
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