Ex-Mayor Eric Adams Responds to Allegations Over NYC Token Profits

This article was first published on The Bit Journal. Former New York City Mayor Eric Adams has forcefully denied allegations of a rug pull tied to the launch of the NYC Token, a cryptocurrency project he publicly endorsed that suffered a steep post-launch collapse.

Adams Denies Profiting From NYC Token

In a statement issued on Wednesday, the spokesperson of Adams, Todd Shapiro denied the allegations that the former mayor misappropriated investor funds or any person acting on his behalf. Shapiro claimed that the allegations are wrong and have no basis in evidence. The statement said:

Shapiro stressed that the participation of Adams in the token was open and focused on advocacy and not profit. Per the statement, Adams endorsed the project as an extension of larger initiatives to advance the cause of blockchain education, anti-semitism and anti-Americanism, and nonprofit causes. Shapiro added:

NYC Token Plunges After Volatile Debut

The controversy comes after the dramatic price action that comes after the token debuts. GeckoTerminal data indicates that the NYC Token momentarily had a market capitalization of over 220 million and then depreciated by over 80 percent to approximately 40 million within a short time. Shapiro accredited the abrupt fluctuations to the excessive volatility that is commonly experienced in newly-launched digital assets.

Bubblemaps Highlights Irregular NYC Token Flows

Blockchain analytics companies have questioned the launch even though denied, although on-chain activity has raised red flags. Bubblemaps had claimed that a wallet associated with the token had drawn down an estimated 2.5 million liquidity in the market around the top and had given it back, with the prices falling, about 1.5 million. The weird trend caused some hype on the internet that the token might have been a rug pull.

Bubblemaps also estimated that there were approximately 4,300 traders involved in the NYC Token launch, and approximately 60% of them were left losing.

Suspected Insider Wallet Records Major Loss

It is worth noting that even wallets that were suspected to have early access had not been spared by the downturn. A suspicious address that purportedly bought tokens several minutes before a public launch but nonetheless made a loss of about $500,000 as the prices declined.

With an ongoing investigation, Adams staff continue to argue that the former mayor was never involved with token management or fund transfers, and counters the allegations which it says have no basis, in a highly volatile market incident.

Conclusion

As scrutiny around the NYC Token continues, Adams’ team maintains that the former mayor had no role in fund movements or token management. As blockchain analysts highlight abnormal on-chain activity, the episode highlights that the current state of the crypto-assets market introduces new digital assets of high volatility and risks.

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Summary

• Adams denied rug pull claims, saying he neither moved funds nor profited from the NYC Token.
• NYC Token crashed over 80% after peaking at a $220 million market cap.
• On-chain information caused alarm, and majority of traders incurred losses even with denials.

Glossary of Key Terms

Eric Adams:  Former NYC mayor, denied rug pull claims.

NYC Token:  Cryptocurrency endorsed by Adams saw a steep post-launch drop.

Rug Pull:  Crypto scam where developers drain investor funds.

GeckoTerminal:  Platform providing crypto prices and market data.

Bubblemaps:  Analytics platform monitoring token liquidity and activity.

Suspicious Wallet:  Wallet flagged for unusual transactions.

Trader Losses:  Losses suffered by token investors.

Token Management:  Oversight of token funds and operations.

Crypto Market Risks:  Potential hazards in cryptocurrency trading.

Frequently Asked Questions about NYC Token

1: Did Eric Adams profit from NYC Token?

No. Adams did not move funds or gain financially; his role was advocacy-focused.

2: Why did NYC Token value drop?

It fell over 80% due to high volatility common in new crypto launches.

3: Were there suspicious transactions?

Yes. Bubblemaps flagged a wallet withdrawing $2.5M and returning $1.5M, raising rug pull concerns.

4: How many traders lost money?

About 4,300 traders participated, with roughly 60% experiencing losses, including early-access wallets.

References

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