- Former NYC Mayor Eric Adams faces controversy after a rug pull drained $3.43 million from the new token he actively promoted.
- The politician earlier hyped NYC Token as a key to combating antisemitic and anti-American sentiments.
Eric Adams, the former mayor of New York City, recently launched his own cryptocurrency, The New York City (NYC) Token. The pro-Bitcoin (BTC) politician touted it as a game-changer in fighting the “rapid spread of antisemitism and anti-Americanism.”
Eric Adams-Linked NYC Token’s Rug Pull Incident
Just moments after its late Monday evening (UTC) launch, blockchain analytics platforms like Bubblemaps have already raised red flags about NYC Token. The memecoin’s on-chain activity immediately indicated that the wallet address linked to its deployer had skimmed roughly $2.5 million in USDC at the peak of its trading activity.
The incident occurred less than an hour following its market rollout. However, the team temporarily returned $1.5 million in USDC to the token’s liquidity as its price sank by 60%.
The NYC Token Team’s Defense
The NYC Token team instantly switched to full-on damage control amid the ensuing public outburst. It claimed that the “overwhelming support and demand” for the token at launch prompted its partners to rebalance the memecoin’s liquidity.
The group ensured that they were “in it for the long haul.” The team noted that it switched the funds to a Time-Weighted Average Price (TWAP) model to prevent large withdrawals that could trigger further wild price swings. Additionally, it said it added funds to the liquidity pool.
The Crypto Community’s Reactions
As of writing on Tuesday morning, the pseudonymous Rune, a blockchain sleuth, found that the same wallet address has completely drained NYC Token’s liquidity pool. Overall, it rug pulled $3.43 million from the project.
Along the way, affected holders and members of the crypto community demanded more transparency from the NYC Token team, asking for the identities of the people involved in the project and its partners besides Adams.
Others likened the incident to the controversial Libra memecoin, which landed Argentine President Javier Milei in hot water with the public early last year. Some even drew parallels between the two projects, suggesting they may share the same developer.
Meanwhile, several people urged victims of the rug pull to organize a class action suit to hold the team behind NYC Token, including Adams, accountable for their actions.
Interestingly, Adams’ official social media account still has his NYC Token promotion pinned, despite already racking up negative comments. Furthermore, the post triggered a community note warning potential buyers of the NYC Token’s recent liquidity drain.
