"Former NYC Mayor Eric Adams has come under fire after his new cryptocurrency token crashed just hours following its launch on Monday. As reported by CoinDesk, Adams' "NYC Token" hit a $580 million market capitalization at its peak before plummeting to around $130 million at this time of writing. Data from the blockchain analysis platform, Bubblemaps, flagged "suspicious" activity surrounding the coin."
"A wallet linked to the NYC Token's deployer withdrew around $2.5 million in liquidity when the token reached its peak. It later added around $1.5 million back after the coin dropped by 60 percent, but, as noted by CoinDesk, around $900,000 wasn't returned. Users across X accuse Adams of a crypto rug pull, a type of scam that occurs when someone promotes a new crypto venture, but then suddenly shuts the project down, while making off with the funds they've raised."
"Adams, who has long been a backer of crypto, claimed during an event on Monday that he would put some of the NYC Token funds toward nonprofits focused on combating antisemitism, "anti-Americanism," and to "teach our children how to embrace the blockchain technology," according to The New York Times The NYC Token website reveals that there are 1 billion tokens in circulation, and that the team behind the coin will take 10 percent of profits - though Adams didn't reveal who exactly is on the team."
Eric Adams launched the NYC Token, which reached a $580 million market capitalization before collapsing to about $130 million within hours. Bubblemaps flagged suspicious activity tied to the token. A wallet linked to the deployer withdrew roughly $2.5 million at the peak, returned about $1.5 million, and left approximately $900,000 unrecovered. Users on X accused Adams of a rug pull. Adams said some token funds would support nonprofits combating antisemitism and "anti-Americanism" and to "teach our children how to embrace the blockchain technology." The token supplies 1 billion units and the team takes 10% of profits, with team identities undisclosed.
Read at The Verge
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