Outgoing New York City mayor Eric Adams marches with participants during the Veterans Day parade on Fifth Avenue in Manhattan, New York City, U.S., November 11, 2025. REUTERS/Brendan McDermid
(New York, New York) – Former New York City Mayor Eric Adams, once dubbed the “Bitcoin mayor” for his outspoken support of cryptocurrency, is facing scrutiny from traders and blockchain analysts after a token he promoted experienced a sudden liquidity withdrawal shortly after launch.
The token, known as NYC Token, was unveiled by Adams at a Times Square press event and marketed as a crypto project tied to civic causes. Shortly after going live, the token’s market capitalization surged to nearly $580 million, driven by heavy retail trading activity.
Within hours, however, blockchain analytics firms flagged large liquidity movements that raised concerns about the token’s structure and management.
On-chain data reviewed by analysts at Bubblemaps showed that a wallet linked to the token’s deployer removed approximately $2.5 million in USDC liquidity near the token’s price peak. After the token’s value fell by more than 60%, roughly $1.5 million in liquidity was later added back, leaving about $900,000 unreturned, according to blockchain tracking.
The activity prompted accusations online of a potential “rug pull,” a term used in crypto markets when liquidity is withdrawn in a way that leaves traders unable to exit positions without significant losses. Several blockchain investigators, including Lookonchain and independent analysts, confirmed that liquidity was removed during peak trading, triggering a sharp selloff.
The NYC Token’s website states that the project has a total supply of 1 billion tokens, with 70% allocated to a reserve excluded from circulating supply. Blockchain data also showed a high level of wallet concentration, with a small number of addresses controlling the majority of the supply — a structure analysts say can amplify volatility and risk for retail investors.
Adams said the token was intended to fund efforts to combat antisemitism and “anti-Americanism” through an unnamed nonprofit, but he did not disclose the identities of the project’s co-founders or provide details on how funds would be administered.
During a separate television interview, Adams offered broad explanations of the token’s purpose, citing the use of blockchain technology in supply chain management as an example of transparency. He did not directly address questions about the liquidity movements or the identities of those controlling the token’s reserves.
NYC Token is distinct from New York City Coin, a separate crypto project launched earlier in Adams’ mayoralty that was later delisted by major exchanges in 2023 due to low liquidity.
As of early Tuesday, the token’s market capitalization had fallen below $100 million, while analysts continued to review on-chain activity related to the launch. No law enforcement action has been announced, and Adams has not publicly responded to allegations that the liquidity withdrawal was improper.
The incident has renewed debate within the crypto industry over political figures promoting digital assets and the risks associated with high-profile, hype-driven token launches.
