Adams Disputes NYC Token Rug Pull Allegations, Says He Made No Profit

Highlights:

• NYC Token plunged shortly after launch, and cause losses and concern among traders.
• Adams’ spokesperson denied any personal profit and blamed the price drop on market volatility.
• In an intervew Adam said token proceeds are planned for education, scholarships, and nonprofits in New York City.

Former New York City Mayor Eric Adams responded after claims linked NYC Token to large liquidity exits and trader losses. The memecoin gained fast attention after launch but plunged 80% within the first hour. Early price swings raised concern among online analysts and crypto users. 

Adams Faces Scrutiny as NYC Token Early Trading Causes Millions in Losses

Todd Shapiro, who speaks for Adams, shared a message on X on Tuesday. He said reports accusing Adams of moving money out of NYC Token were false and had no proof. He added that Adams did not take investor funds or make any personal profit from the launch. Shapiro also said Adams never aimed for personal or financial gain and blamed the price drop on market volatility.

Concerns increased after blockchain reviewers examined wallet activity tied to the token’s first hours. A fast price drop followed soon after trading opened, which led many users to post transaction records and price charts online. Rune Crypto issued one of the first alerts. The analyst said nearly $3.4 million in liquidity left the pool shortly after launch and described the pattern as similar to a rugpull scheme.

Another review came from Bubblemaps, a trading data platform. The platform reported that wallet 9Ty4M, linked with the token deployer, removed about $2.5 million in USDC near the market peak. Later, around $1.5 million returned after the token price fell by over 60%.

Bubblemaps later shared estimates about trader losses. Around 4,300 wallets joined early trading. About 60% of participants faced losses during the first few hours. Most affected traders lost under $1k. Around 200 wallets recorded losses between $1k and $10k. A smaller group saw losses reaching tens of thousands. At least fifteen traders lost more than $100k. Such figures increased pressure on the project to explain liquidity handling. Online debate stayed active as more users reviewed wallet data and trading behavior.

Shapiro’s claim that no funds were removed from the NYC Token seems to conflict with an earlier message from the NYC Token X account. That post said the team rebalanced liquidity to handle launch demand and added more funds to the liquidity pool. 

Adams Pledges Token Funds for Education and Scholarships

In a FOX Business interview on Jan. 12, Adams said NYC Token proceeds would fund nonprofits that educate about antisemitism and anti-Americanism. He added that some of the funds would support scholarships for students in underserved New York City communities. Shapiro stated that the token’s launch has not changed Adams’ commitment to these efforts. “Mr. Adams remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values,” he added.

Still, price swings and liquidity actions raised trust concerns among market observers. The project website shows the token runs on Solana with a total supply of 1 billion units. About 70% sits in a reserve called NYC Token Reserve and stays outside the planned circulating supply. The website does not clearly list the partners responsible for liquidity control. DEXScreener data shows that the Solana-based token has been trading near $0.134, after falling from $0.475 shortly after its launch.