Eric Adams’s NYC Token Faces $1 Million Withdrawal Scandal

Eric Adams, former NYC Mayor, unveiled the NYC Token, a Solana-based cryptocurrency, in Times Square on January 13, 2026, intended for funding educational and community initiatives.

Liquidity was withdrawn shortly after, causing a $1 million loss and an 80% crash, highlighting significant risks in politically branded cryptocurrencies.

Solana-Based NYC Token Sees Major Liquidity Pull

Eric Adams launched NYC Token on January 13, 2026, in Times Square. Intended as a Solana-based cryptocurrency, it aims to fund initiatives against antisemitism and for blockchain education. Liquidity was pulled shortly after launch, revealing a scandal. Eric Adams and C18 Digital are central to the situation. Adams promoted blockchain’s governmental potential. Soon after launch, liquidity was removed, losing approximately $1 million. The token aimed to support nonprofits, yet the financial mishap raises concerns. Eric Adams, former NYC Mayor, remarked, “Blockchain can actually improve government, not fight against government.” – Fortune

NYC Token Falters with 80% Value Drop

The token experienced an 80% value drop, falling from a $600 million peak to around $110 million. Industry observers, like Vaiman, labeled it an “obvious rug pull”, expressing confusion over the motivations behind such a drastic action. The incident may prompt tighter scrutiny from regulators who have yet to comment. The event mirrors previous memecoin collapses, highlighting potential transparency issues in cryptocurrency launches. Investors’ trust in similar projects may be shaken, affecting future engagement.

Insider Moves Mirror Past Memecoin Collapses

Past memecoin incidents, including Javier Milei’s Libra, showed similar hype-driven value surges followed by crashes. These events underscore the risks associated with politically branded coins and insider liquidity moves, leading to significant financial losses for retail investors. Expert analyses suggest the pattern seen in NYC Token reflects broader market volatility in the crypto sector. Analysts stress the need for clarity in tokenomics to prevent such collapses. The focus must shift towards enhancing investor protection mechanisms for stability.