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- Eric Adams denies moving funds in NYC Token liquidity claims.
- NYC Token’s volatile launch sparks concerns, especially liquidity issues.
- Blockchain analysis flags suspicious activities, sparking investigation into token.
Former New York City Mayor Eric Adams has directly refuted allegations that he orchestrated suspicious withdrawals from his newly launched cryptocurrency, the NYC Token. Todd Shapiro, Adams’ spokesperson, asserted that claims of funds being moved out of the token are unfounded, clarifying that Adams did not profit from the token’s launch or remove money from the project.
Shapiro acknowledged the token’s volatility and criticism, calling such fluctuations typical for new digital assets. He reiterated that the NYC Token was designed to support nonprofit and community education rather than serve as an investment.
The official statement of the token cites instability observed in its initial phases as the result of required liquidity rebalancing—a process in which the balance of funds available for buying and selling is adjusted. The partners of the project were forced to change these liquidity levels, which sounded alarms in crypto circles after an impressive response to the token’s introduction. The NYC Token team also stated that funds were redistributed to stabilize the market, addressing issues arising from blockchain analysis, which involves inspecting public transaction records.
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Liquidity Concerns and Losses Among Traders
Blockchain analysts reported that, as the NYC Token’s value peaked, a wallet linked to its deployer withdrew approximately $2.5 million USDC and later repaid $1.5 million USDC as the value dropped by more than 60 percent. This activity, flagged by services like Bubblemaps, led to significant losses for about 4,300 traders—roughly 60 percent of those who joined the NYC Token launch — and fueled doubts about the project’s integrity.
The extent of the losses varied: some traders lost under $1,000, while a smaller group lost between $1,000 and $10,000. A select few even faced losses upwards of $100,000.
Despite ongoing controversy, Adams’ group consistently maintains that the NYC Token was intended solely to support social causes, not serve as an investment vehicle. However, the project’s lack of transparency—especially regarding its partners—has deepened existing skepticism in the cryptocurrency community and sharpened debates over the project’s legitimacy.
As the NYC Token works to recover from its rocky launch, concerns over the project’s governance and long-term stability persist. While the project maintains a focus on technical merits and distribution strategies, insufficient information about its partners continues to raise doubts about its sustainability and credibility.
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