Former New York City mayor Eric Adams is facing intense scrutiny after a meme cryptocy he promoted — the “NYC Token” — surged briefly to a roughly $580 million market cap at launch and then crashed more than 80 % within minutes, wiping out substantial investor value and drawing accusations of a “rug pull” scam.
The token was touted by Adams as a project that would support initiatives like combating antisemitism and anti-Americanism and provide blockchain education, but rapid liquidity withdrawals shortly after trading began prompted traders and analysts to question the launch’s transparency and integrity.
On-chain data suggests significant early liquidity — including roughly $2.5 million in USDC — was pulled soon after launch, then partially returned, leaving about $1 million unaccounted for, according to reports.
Critics and members of the crypto community have labeled the incident a potential rug pull, a scenario where insiders withdraw liquidity or profits early, leaving retail investors with steep losses and limited ability to exit their positions. The controversy has reignited conversations about the risks of meme coins and celebrity or political figure endorsements within the crypto ecosystem.
With little information about the token available online, copycat tokens flooded meme coin launchpads like Pump.fun. Hours after Adams spoke, more than a dozen such tokens were trading, borrowing the logo and ticker symbol that the former mayor displayed.
Adams noted in the video posted by Stratman that he took his first three paychecks as mayor in Bitcoin and Ethereum in 2022, a gesture underscoring his support of the nascent industry. Some crypto advocates called Adams the “Bitcoin mayor” for his support of the space.
Last year, Adams also hosted the inaugural NYC Crypto Summit, where he unveiled an advisory council aimed at cementing the city’s leadership in digital assets. At the time, Adams said he was unwavering in his goal to make “New York City the crypto capital of the globe.”
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