Former New York Metropolis Mayor Eric Adams is dealing with mounting criticism after the cryptocurrency he promoted, NYC Token ($NYC), collapsed sharply inside hours of its high-profile launch, prompting accusations of a rug pull and renewed debate over political memecoins. However, no regulatory authority has but concluded that the launch constituted fraud, and Eric Adams and the token’s operators have denied wrongdoing.
As of the most recent buying and selling, NYC Token ($NYC) was priced at $0.1392, up 7.65% over the previous 24 hours. Regardless of the modest rebound, the token stays far beneath its launch highs and has a market capitalization of roughly $10.69 million.
A Occasions Sq. Launch Adopted by a Speedy Collapse
Eric Adams unveiled NYC Token ($NYC) in Occasions Sq. on January 12, 2026, pitching the challenge as a blockchain-powered civic initiative. Constructed on the Solana blockchain, the token shortly gained speculative momentum, surging to an all-time excessive of $0.3446.
NYC Token ($NYC) briefly staged a rally following the launch. The token plummeted by greater than 85% shortly after, leaving its market cap at round $110 million and triggering widespread alarm amongst retail traders. The corporate working the token, C18 Digital, denied allegations of misconduct, claiming the crash was brought on by “companions rebalancing liquidity” on decentralized exchanges.
“Given the overwhelming help and demand for the token at launch, our companions needed to rebalance the liquidity. We’re conscious of studies flagging the transactions, eradicating liquidity from the pool.
The staff commenced the funds for TWAP and added extra funds to the liquidity pool.
We’re in it for the lengthy haul!”, NYC Token, posted on X (previously Twitter)
Eric Adams echoed that clarification throughout an look on Fox Enterprise, arguing that early volatility was being mischaracterized as fraud.
Nevertheless, blockchain analytics agency Bubblemaps challenged that narrative. Bubblemaps reported {that a} pockets linked to the deployer withdrew roughly $3.18 million in USDC (Stablecoin) from the liquidity pool on the exact second NYC Token ($NYC) hit its peak value. Solely about $1.5 million in USDC (Stablecoin) was later returned, leaving roughly $932,000 unaccounted for.
Nicolas Vaiman, CEO of Bubblemaps, mentioned the transaction sample aligned with traditional rug pull mechanics slightly than routine liquidity administration. The findings had been independently corroborated by Lookonchain and cited extensively by The Washington Submit.
Political Messaging and the “Why” Behind the Token
Past the market mechanics, the political framing of NYC Token ($NYC) has intensified scrutiny. Eric Adams mentioned proceeds from the token can be used to fight antisemitism and anti-Americanism, fund scholarships for HBCUs and underserved New York Metropolis college students, and train kids what he repeatedly known as “block change” know-how.
Adams explicitly contrasted his initiative with the insurance policies of present NYC Mayor Zohran Mamdani, framing the token as a corrective measure. Critics argue that invoking delicate political and social causes might have given NYC Token ($NYC) a veneer of legitimacy that inspired speculative shopping for.
Crypto threat specialists say the warning indicators had been seen early. Extra information confirmed that one insider pockets bought roughly $750,000 price of NYC Token ($NYC) simply ten minutes earlier than the general public announcement. That pockets in the end misplaced cash in the course of the crash, however analysts say the timing underscores weak launch controls.
A Cautionary Story for Political Memecoins
Whereas Eric Adams continues to disclaim wrongdoing and insists NYC Token ($NYC) can get well, the blockchain analysts cite it as a textbook instance of cryptocurrency market manipulation dangers in 2026.
As Bubblemaps, regulators, and political leaders assess the fallout, the collapse of NYC Token ($NYC) highlights the rising risks on the intersection of politics, blockchain, and speculative finance.
Additionally Learn: What are Non-Fungible Tokens? (NFT) How It Works