Former New York City mayor Eric Adams has rejected claims that he moved funds or personally benefited from the NYC Token, following controversy surrounding the project’s abrupt market decline. The token, which launched earlier this week, fell by more than 80% within its first hour, triggering accusations from parts of the crypto community.
In a public statement, Adams’ spokesperson said no investor funds were removed and no profits were taken by the former mayor. Allegations suggesting a so-called rug pull were described as “unsupported by evidence”, with the price collapse attributed instead to market volatility and speculative trading behavior.
Despite the denial, uncertainty grew after the project’s official social account stated that it had “rebalanced liquidity” in response to strong early demand, while also claiming additional liquidity was added. This explanation appeared to conflict with assurances that no funds were moved, fueling debate among traders and analysts.
Education and Scholarships Remain Core Goal
Adams has maintained that the token’s purpose is not personal enrichment. According to his representatives, proceeds are intended to fund education initiatives, raise awareness on social issues, and support scholarships for underserved students. Officials say this mission remains unchanged despite the backlash.
Market data shows the token now trading near $0.13, largely unchanged since the initial sell-off. From its early peak, over $400 million in market value has been erased, underscoring the risks associated with high-profile token launches and thin liquidity.
The episode highlights ongoing concerns around transparency, governance, and investor trust in politically linked crypto projects.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.