Former New York City Mayor Eric Adams denied allegations that the launch of the memecoin NYC Token was accompanied by liquidity withdrawal and losses for investors.
Through his representative, he stated that he did not withdraw funds from the pool, did not personally profit, and that investors' money was not taken out, calling the sharp price fluctuations typical volatility for new tokens.
The scandal was triggered by on-chain analytics data indicating the withdrawal of several million dollars in liquidity shortly after launch, followed by a partial return of funds after the price drop. The project team acknowledged the operations as "liquidity rebalancing"
