The memecoin launched by former New York mayor Eric Adams faces Rug Pull accusations

On-chain observers reported that at least $3.4 million had been removed from the token’s liquidity pools. Bubblemaps recorded that a wallet linked to the deployer withdrew roughly $2.5 million in USDC at the price peak, then later returned about $1.5 million after the token dropped more than 60%.

Analysts described the flow of funds as “abnormal,” comparing it to the LIBRA token launch, where similar liquidity-manipulation patterns were observed.

Other market participants also warned about the project’s high centralization and elevated risk profile. One commentator noted that the ownership structure raises questions about supply control and liquidity management.

According to the NYC Token website, the asset is built on Solana, has a total supply of 1 billion tokens, and allocates 70% of that supply to the “NYC Token Reserve,” which will not enter circulation in the early stages.

Adams said revenue from the token will be directed to an undisclosed nonprofit focused on combating anti-American sentiment, antisemitism, and other social challenges. He emphasized that cities can use blockchain as effectively as major corporations and described the token as a tool for improving safety and transparency.

Despite his political background, Adams has long positioned himself as a supporter of crypto. As mayor, he took his first paychecks in bitcoin and ether, hosted a crypto summit at Gracie Mansion, and created the city’s Office of Blockchain and Digital Assets. He also previously supported NYC Coin and BitBond.

At the press conference, however, Adams did not disclose the project team, stating only that he would not receive a salary from the token.

The situation around NYC Token remains unresolved. Analysts continue to monitor liquidity, and the project team has not yet commented on the on-chain findings.