Eric Adams Promoted NYC Token Draws Rug Pull Scrutiny After Liquidity Exit

Highlights:

• The NYC Token crashed shortly after its launch, following the removal of liquidity.
• On-chain data showed that wallets pulled liquidity during the selloff.
• The launch has raised concerns about crypto projects tied to public figures.

Former New York City Mayor Eric Adams has reportedly executed a rug pull tied to his newly launched memecoin, $NYC, according to PeckShieldAlert. Once Adams advertised the token via his own social media platforms, the liquidity vanished approximately 30 minutes into trade. That abrupt liquidity withdrawal caused steep losses, and traders estimated investor losses of about $3 million. One trader lost approximately $473,500 within twenty minutes, a drop of more than 60%.

🚀 NYC Token Rug Pull

Former NYC mayor Eric Adams faces allegations of a $3 million rug pull after launching the NYC Token memecoin.

— Cryptopress (@CryptoPress_ok) January 13, 2026

Traders started raising flags of unusual activity almost immediately after liquidity disappeared in the decentralized exchange pools. The token fell by over 85% in value in a short trading period. Early trading activity briefly pushed the token’s market capitalization between $580 million and $730 million. However, that surge faded quickly once liquidity disappeared, and panic selling intensified.

On-Chain Data Flags NYC Token Liquidity Moves

Since the collapse, analysts have resorted to on-chain data to interpret the series of events. Blockchain trackers indicated that a wallet associated with the NYC Token deployer withdrew approximately 2.4 million USDC around the price peak of the token. That pullback created short-term alarm as it coincided with the onset of the selloff. The same wallet later added back about 1.5 million USDC shortly after prices had plummeted sharply.

Eric Adams has now drained over $3,400,000 from the liquidity pool of his memecoin: it's now a rug-pull

funny enough, his networth was only $2,000,000 pic.twitter.com/bcNMDbnmrE

— Rune (@RuneCrypto_) January 12, 2026

Due to such transactions, nearly $1 million in liquidity could not be accounted for based on public tracking data. Analysts described the trend as a one-sided liquidity flow in favour of the deployer wallet.

The focus also shifted to supply distribution and the concentration of the holders of the token. Public wallet data indicated severe concentration by a very small number of holders. According to reports, the top ten wallets dominated over 98% of the total supply. A single wallet was reportedly holding nearly 70% of all the tokens in circulation.

I just found manipulation activity on $NYC 🚨

This one is extremely centralized and high risk.

70% of the entire supply is controlled by ONE wallet.

Top 10 holders control 98.73% of all tokens.

Here’s what’s happening:

– Promoted by Eric Adams
– He is the former NYC mayor
-… pic.twitter.com/SYbHAv6g6f

— StarPlatinum (@StarPlatinum_) January 12, 2026

Other recent crypto launches have raised similar concerns. A newly launched token, IBX, was accused of rug pull after raising $24 million during a presale. The project was originally meant to raise a relatively small value, but it had amassed approximately 160,000 SOL because of high demand. Questions on how liquidity was managed arose later, forcing investors to demand transparency.

Civic Claims Face Questions Under New City Leadership

Adams positioned the project as a civic and educational objective related to the common good. He explained that the token was a commemorative asset that would combat antisemitism and aid in blockchain education. He further indicated that the proceeds would support scholarships and nonprofit projects in low-income communities. The claims were, however, soon marred by technical and transparency issues after the market crash.

Proud to launch @buynyctoken, a new token built to fight the rapid spread of antisemitism and anti-Americanism across this country and now in New York City.

Now live at https://t.co/zowY9Ri3aK pic.twitter.com/qBMzV88Tmj

— Eric Adams (@ericadamsfornyc) January 12, 2026

Shortly after its initial launch, observers reported gaps in the public website of the project. The official site displayed broken links to the whitepaper access and token purchase. Moreover, the roadmap was not supported with timelines and operational planning.

The token launch comes months after several rug pulls occurred related to influential people in governments. President Javier Milei of Argentina briefly endorsed a Solana-based memecoin on X, stating it would help small businesses. Milei deleted the post after the community warned about the possibility of rug pull. He afterwards clarified that he did not have complete project details and ceased to promote it after gaining more information.

The NYC Token launch has coincided with a change in leadership in the New York City government. Adams left office recently, with Zohran Mamdani becoming mayor on January 1. Before his departure, Adams endorsed New York as a future hub of responsible crypto innovation.