Former New York City mayor Eric Adams introduced a cryptocurrency called NYC Coin on Monday, aiming to fund initiatives against antisemitism and promote crypto education. However, the launch quickly drew allegations of a rug pull scam, with liquidity reportedly withdrawn shortly after, causing the token's value to plummet. Adams, a longtime crypto advocate, faces questions over the timing and mechanics of the event.
Former New York City mayor Eric Adams, known as the 'Bitcoin mayor' for receiving his first three paychecks in bitcoin and pushing the city to become the 'crypto capital of the world,' launched a new token called New York City Coin ($NYC) on Monday. In an interview with Fox Business host Maria Bartiromo, Adams described the coin's mission as promoting cryptocurrency use in New York while funding antisemitism awareness and education, crypto education for city youth, and related scholarships. He also mentioned the future of 'blockchange' twice during the discussion.
The Jerusalem Post reported the launch occurred at a Times Square press conference, where Adams claimed the token would 'address antisemitism and anti-Americanism,' appearing to criticize his successor, Zohran Mamdani, who revoked the city's adoption of the IHRA definition of antisemitism. The token has a maximum supply of one billion units.
Shortly after launch—about 30 minutes, according to observers—the coin experienced what many described as a rug pull. New York Magazine noted the market cap soared to around $100 million before a wallet linked to the issuer withdrew liquidity worth up to $3.5 million, leaving investors with devalued tokens. The Jerusalem Post detailed a different figure: the creator sent 80 million coins to an account for liquidity on a decentralized exchange, which then removed $2.43 million in USDC (a dollar-pegged stablecoin), later adding back $1.5 million, with $932,000 unaccounted for. Post-incident, the value fell to about $110 million from a reported peak of $600 million, per Solscan data.
A spokesperson for $NYC stated that due to increased demand, the company's 'market maker made adjustments' to liquidity, denying any rug pull. This incident echoes past meme-coin collapses tied to figures like Melania Trump and the Squid Game series. Adams, who faces $4.5 million in legal fees from a dropped federal case, has not directly addressed the allegations.
The event highlights ongoing risks in cryptocurrency launches, especially those tied to public figures.