Eric Adams' NYC Token cryptocurrency faces rug pull accusations after value plummets

Former New York City Mayor Eric Adams unveiled a new cryptocurrency called NYC Token on Monday, promoting it through appearances on Fox Business, a news conference in Times Square, and a promotional video. In the video, Adams predicted the coin would "take off like crazy."

The token surged rapidly after its launch late Monday, briefly reaching a market capitalization of nearly $600 million. The initial momentum was short-lived. Blockchain data show that an account associated with the project then withdrew approximately $2.5 million in liquidity, after which the coin's value plummeted significantly.

The sudden withdrawal and price collapse prompted swift accusations from cryptocurrency investors and observers that the project could be a "rug pull"—a term in cryptocurrency for when a project's creators hype a token and then disappear after taking investors' money, according to Coinbase.

NYC Token's company issued a statement on X denying wrongdoing. "Given the overwhelming support and demand for the token at launch, our partners had to rebalance the liquidity," the company said. The statement rejected claims of a rug pull.

Adams has not commented publicly about the accusations and could not be reached for comment. His exact role at the company remains unclear. According to one statement attributed to Adams, the team had not withdrawn any money from the account, though this contradicts blockchain data showing the liquidity removal.

The coin was promoted as a way to raise money to fight antisemitism and what Adams described as "anti-Americanism." The project drew immediate scrutiny from cryptocurrency watchers and investors concerned about the circumstances surrounding the price collapse and fund withdrawal.