A Solana-based memecoin promoted as NYC Token ($NYC) and linked to former New York City mayor Eric Adams saw a sharp selloff shortly after launch, as on-chain analysts alleged that liquidity was pulled from the token’s trading pool, triggering a rapid market cap collapse.
According to tracking platforms and social media analysis, wallets associated with the token’s deployer removed millions of dollars in USDC liquidity from decentralized exchange pools shortly after the token gained traction. Several widely followed on-chain accounts described the activity as consistent with a “rug pull,” though no official investigation has been announced at the time of writing.
The token briefly surged to a high market capitalization before falling sharply. Market trackers cited by crypto commentators showed $NYC dropping from roughly $180 million to below $30 million MCap, before stabilizing around the $39 million range in volatile trading.
Adams promotes token as funding vehicle
Adams introduced the project in a TV appearance, stating that the initiative — branded as NYC Token — would be used to fund three focus areas: education and awareness programs targeting antisemitism and anti-American sentiment, blockchain and crypto learning initiatives for New York youth, and scholarship programs for students from underserved communities.
The project’s website described the token as inspired by New York’s “resilience, diversity and ambition” to become the crypto capital of the world, a goal Adams has repeatedly referenced during his time in office.
Tokenomics show 70% reserve allocation
According to the published tokenomics, 70% of total supply (700 million $NYC) is allocated to an “NYC Token Reserve” and is not expected to be part of the initially circulating supply — a structure that some traders highlighted as a centralization risk typical of high-volatility memecoin launches.
On-chain claims fuel backlash
On-chain data cited by analysts suggested that liquidity withdrawals occurred within a short window after launch, with figures ranging from $2.4 million to over $3 million, depending on the pool and reporting method.
The allegations immediately fueled online backlash, with traders questioning governance, token control, and whether retail buyers had sufficient disclosure about liquidity conditions before entering positions.
Adams’ crypto record as mayor
Adams has been one of the most visible U.S. political supporters of crypto, previously stating he took early paychecks in bitcoin and promoting blockchain’s potential role in public sector modernization. He signed an executive order establishing an Office of Digital Assets and Blockchain Technology and backed proposals for blockchain pilots during his administration. Some of those initiatives were later reversed after New York’s new mayor moved to repeal a range of Adams-era executive actions.