Former New York City Mayor Eric Adams is pushing back against claims that his newly launched NYC Token was involved in a “rug pull,” after the meme coin’s rocky debut left many investors facing steep losses.
In a statement posted Tuesday on Adams’ X account, spokesperson Todd Shapiro said accusations that Adams moved money out of the project were “false and unsupported by any evidence.”
According to Shapiro, Adams did not touch investor funds and did not profit from the token’s launch. “No funds were removed from the NYC Token,” the statement said.
Team Blames Losses on Early Market Volatility
The NYC Token team says the sharp price swings that followed the launch were simply part of the chaotic nature of early-stage crypto projects.
“Like many newly launched digital assets, the NYC Token experienced market volatility,” Shapiro said, describing the sell-off as a market reaction rather than anything coordinated or improper.
The response came after blockchain data showed large liquidity movements shortly after the token went live, raising red flags among traders.
Liquidity Moves Raise Eyebrows
The project later acknowledged that some liquidity had been temporarily adjusted during the launch. In a post on X, the team said partners removed funds briefly to manage pricing execution and later added more capital back into the liquidity pool.
Those explanations, however, have not fully reassured critics.
Several independent analysts flagged transactions that appeared to drain liquidity near peak prices, fueling concerns that early buyers were left exposed.
Crypto analyst Rune Crypto was among the first to raise alarms, claiming roughly $3.4 million in liquidity was withdrawn shortly after launch and accusing the project of behaving like a rug pull.
Onchain analytics platform Bubblemaps also highlighted unusual patterns. According to its analysis, a wallet linked to the token’s deployer removed about $2.5 million in USDC near the price peak, then later added back roughly $1.5 million after the token had already fallen more than 60%.
Most Traders Ended Up Losing Money
Bubblemaps estimates that around 60% of NYC Token traders lost money during the token’s first hours of trading.
Out of roughly 4,300 participants, most losses were under $1,000. However, about 200 traders lost between $1,000 and $10,000, while a smaller group suffered losses in the tens of thousands. At least 15 traders reportedly lost more than $100,000.
Transparency Questions Remain
Adams’ team has emphasized that NYC Token was promoted as a way to support nonprofit initiatives and community education — not as a speculative investment.
Still, the episode has reignited broader concerns about transparency, particularly around how liquidity is managed and who has control.
According to the project’s website, NYC Token runs on the Solana blockchain with a total supply of one billion tokens, 70% of which is held in reserve and excluded from circulation.
While the team has pointed to unnamed partners as being responsible for liquidity adjustments, it has not released a detailed breakdown of those actions — leaving lingering questions about oversight, accountability, and trust.
