Former New York City Mayor Eric Adams announced the NYC Token cryptocurrency in Times Square on Monday, promising to combat antisemitism and anti-Americanism. The token quickly reached a $600 million valuation but lost 75% of its value following a $2.5 million withdrawal. Experts question the launch's integrity, while Adams denies any wrongdoing.
Eric Adams, the former mayor of New York City, returned to Times Square on Monday after trips to Dubai and the Democratic Republic of Congo to unveil his first post-mayoral initiative: the NYC Token. He described it as a game-changer, stating, “We’re about to change the game,” and predicting, “This thing is going to take off like crazy.” The token aimed to support awareness campaigns against antisemitism and anti-Americanism, crypto education for youth, and scholarships, with a portion of proceeds allocated evenly among these causes, though specifics on organizations or percentages remain undisclosed.
Within minutes of launch, the token surged to a nearly $600 million valuation. However, it soon plummeted by 75%, triggered by an account linked to its creation withdrawing $2.5 million in coins, per analysis from crypto firm Bubblemaps. About $1.5 million was later returned, but investor confidence eroded. Over 4,000 accounts invested, with roughly 80% buying during a 20-minute window before Adams' announcement but after the token's availability, giving insiders an edge.
Adams, through spokesperson Todd Shapiro, attributed the volatility to normal market conditions and emphasized transparency: “Like many newly launched digital assets, the NYC Token experienced market volatility. Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.” He denied profiting or moving funds, calling contrary reports “false and unsupported by evidence.” Withdrawals were explained as adjustments by market maker FalconX.
Partners include Frank Carone, Adams' former chief adviser, and Yosef Sefi Zvieli, a real estate investor with no prior crypto experience. Zvieli previously managed a troubled Brooklyn dorm turned homeless shelter with Carone's help. Adams consulted billionaire Brock Pierce post-launch, who affirmed, “no one has run off with anyone’s money,” but noted he would have assembled a better team if involved earlier.
Experts like Nicolas Vaiman of Bubblemaps criticized the vagueness: “Political coins are driven purely by attention... What does it even mean? How are you going to achieve that in a token?” Benjamin Cowen of Into the Cryptoverse called it potentially legitimate but poorly executed: “It could be a legitimate project with just a really bad rollout. But the way it was launched didn’t instill a lot of confidence. It’s hard to regain trust in the crypto community.” As of Wednesday, most investors lost money, with 15 down at least $100,000 and 10 profiting similarly. Pierce hopes for salvage, but the project's fate remains uncertain.
