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- NYC Token soared to $580M before collapsing 80% after liquidity was withdrawn.
- Holders warn of extreme centralization, with top wallets controlling nearly all supply.
- Launch revives scrutiny of Adams’ past decisions and public role in crypto projects.
The launch of NYC Token by former New York Mayor Eric Adams began with strong promotion and immediate public attention. The memecoin surged to a $580 million market cap within minutes. It then plunged 80% shortly after reports surfaced of a liquidity withdrawal that wiped out nearly $500 million in value.
Adams announced the NYC Token from the back of a taxi in a promotional video. He said the project would “bring New York to you” and claimed the token was prepared to take off like shocking. He also framed the launch as a continuation of his four-year tenure as mayor.
Adams Links NYC Token to Social Issues and Blockchain Education
During a press appearance in Times Square, Adams said the token used “up-to-date technology.” He linked its creation to concerns over what he called rising “antisemitism and anti-Americanism.” In a video posted by Josie Stratman, Adams stated that he wanted the project to educate children about blockchain.
Adams said he would not take a salary for his involvement at this stage. He added that a salary could be considered later. He made the remarks in response to questions from New York reporters.
Adams stepped back from a reelection bid due to financial issues. Zohran Mamdani assumed the New York City mayoral office on January 1 after a formal swearing-in ceremony. Before leaving office, Adams established a municipal crypto and blockchain office described as the first of its kind in the country.
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According to the NYC Token website, there would be one billion tokens in circulation. It referred to the asset as the next-generation cryptocurrency that is influenced by New York City. The project introduced the token as a representative of the city’s pace and innovativeness.
NYC Token Crash Sparks Liquidity and Centralization Concerns
The collapse of the price did not last long, and it was merely a few minutes after the launch of the token. On X, blockchain researcher Rune Crypto wrote that he found that $3.4 million was depleted. Liquidity of more than $2.5 million had been drawn by the project deployer, he said.
StarPlatinum, another crypto user, also made advance warnings that the token was extremely centralized. According to him, 98.73% of the whole supply was controlled by the top 10 holders. He further stated that one wallet held 70% of all tokens.
The crash was preceded by renewed focus on Adams. The federal court had previously charged him with a corruption case five times. The U.S. Department of Justice sought the dismissal last year, and the case was terminated with prejudice.
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