Former New York City Mayor Eric Adams launched a NYC meme coin on Monday, which surged to a $580 million market cap before crashing 81% to $110 million as a wallet linked to the deployer pulled $2.5 million in liquidity at the peak.
NYC Token Hits $580M Then Collapses In Minutes
Adams unveiled the Solana (CRYPTO: SOL)-based meme coin wearing a Fendi scarf and baseball cap showing the NYC ticker symbol, saying the project would fight “antisemitism and anti-Americanism” while teaching children blockchain technology.
The token rocketed from launch to a $580 million market cap within minutes before plummeting 81% as nearly $500 million in value evaporated.
Analytics firm Bubblemaps identified suspicious activity by wallet 9Ty4M, which created one-sided liquidity pools on Meteora.
The wallet removed approximately $2.5 million in USDC at the peak, then added back $1.5 million after a 60% drop with no explanation for the liquidity moves.
Moreover, one trader lost $473,500 (a 63.5% loss) in under 20 minutes as panic selling hit the token.
Blockchain data shows the wallet linked to the token deployer pulled $3.18 million USDC from the liquidity pool right as price peaked.
Adams Calls It A ‘Commemorative Asset’ For Social Causes
Adams said during the Fox Business interview that “a substantial amount of the money raised” would go to nonprofits, historically black universities, and scholarships for New York City students from underserved communities.
He’s not currently taking a salary but said that decision could change later.
The token has a maximum supply of 1 billion coins, with 80 million available at launch expanding to 300 million in circulation.
The official website describes NYC Token as representing “the spirit of New York City—innovation, diversity, and the drive to succeed.”
However, critical details like project partners and a whitepaper are missing from the website, prompting questions about transparency.
Pattern Matches Argentine President’s Failed LIBRA Token
The collapse echoes last year’s LIBRA token promoted by Argentine President Javier Milei, which crashed after similar liquidity manipulation and led to fraud and racketeering class-action lawsuits.
Bubblemaps said the liquidity manipulation closely mirrors the LIBRA launch, when actors also heavily manipulated liquidity.
The pattern of politician-backed memecoins launching with fanfare then immediately collapsing is becoming a concerning trend.
Adams earned the nickname “Bitcoin Mayor” after taking his first three paychecks in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) in 2022.
He hosted NYC’s inaugural Crypto Summit last year and established the Office of Digital Assets and Blockchain Technology, vowing to make New York “the crypto capital of the globe.”
Political Memecoins Face Growing Scrutiny
NYC Token joins TRUMP (CRYPTO: TRUMP) and MELANIA (CRYPTO: MELANIA) as politician-backed memecoins that combine celebrity influence with crypto speculation.
Senator Adam Schiff (D-CA) is among lawmakers calling for ethics rules preventing public officials from profiting on crypto ties as a market structure bill approaches Thursday’s markup vote.
These tokens raise concerns because they can be used to corrupt elected officials.
A federal judge dismissed Adams’ corruption charges in April at the Department of Justice’s request under President Trump.
Image: Shutterstock
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