Eric Adams Denies Liquidity Pull After NYC Token 80% Crash

• NYC Token crashed by nearly 80% within an hour, leading to rug pull allegations.
• EX mayor Adams team denied moving funds as on-chain data showed $3M withdrawals.
• One-sided liquidity design allowed USDC movements, raising transparency concerns.

Former New York City Mayor Eric Adams is denying allegations tied to a sharp collapse of the NYC Token, a Solana-based memecoin launched Monday. The token lost nearly 80% within its first hour, leading to claims that $3.4 million in liquidity was withdrawn. 

Adams Team Pushes Back as On-Chain Claims Spread

Shortly after the NYC Token launch on Monday, the token surged to a market cap near $580 million. However, prices fell sharply within 30 minutes, wiping out hundreds of millions in value. As the drop accelerated, crypto analysts began tracking wallet activity tied to the token’s deployer.

Notably, blockchain data flagged a withdrawal of roughly $3 million in USDC liquidity near the market peak. This movement coincided with the steep price decline. As a result, accusations of a potential rug pull spread rapidly across X.

In response, Todd Shapiro, a spokesperson for Eric Adams, issued a firm denial on Wednesday. “To be absolutely clear: Eric Adams did not move investor funds,” Shapiro said. He also stated Adams did not profit from the token launch.

Shapiro further insisted that no funds were removed from the NYC Token liquidity pool. He described the allegations as false and unsupported by evidence. According to him, market volatility caused the sudden price collapse.

However, scrutiny intensified as analysts compared those claims with on-chain records. Data suggested that about $1.5 million was later added back after prices had already fallen more than 60%. Roughly $900,000, however, did not return.

Liquidity Rebalancing Statement Raises Questions

As scrutiny continued, earlier posts from the NYC Token’s official X account resurfaced. The team stated it had “rebalanced the liquidity” due to strong launch demand. It also said additional funds were added to the liquidity pool afterward.

However, that explanation appeared to conflict with Shapiro’s assertion that no funds were removed. Analysts highlighted the token’s launch structure. The NYC Token reportedly used a one-sided liquidity pool containing only the token itself. As buyers entered using USDC, liquidity accumulated fast.

Reportedly this setup allowed developers to withdraw USDC without selling tokens directly. That method, some noted, can mask large exits during peak demand. Blockchain analytics platform Bubblemaps also flagged a wallet linked to the deployer. The wallet withdrew around $2.5 million during the surge. 

While some funds returned later, the timing raised concerns. Meanwhile, Delaware records show that an entity called C18 Digital is associated with the project. The company was incorporated on December 30, 2025, shortly before the token launch.

Related: Eric Adams’ NYC Token Surges, Then Crashes Over 80%

Civic Pitch, Market Fallout and Current Trading Levels

Despite the controversy, Adams has continued to frame the NYC Token around civic goals. In interviews, including with FOX Business, he said proceeds would support education programs. He also cited scholarships for underserved New York City students.

Adams also said funds would help raise awareness around antisemitism and anti-Americanism. However, details on fund management or nonprofit distribution remain undisclosed.

Shapiro said the token’s performance has not changed Adams’ position. He added that Adams remains committed to responsible innovation and emerging technologies. Market data shows limited recovery. 

More than $400 million in market value has been erased since that high. Trading has remained flat since the initial collapse, with volume significantly reduced. The episode has renewed attention on politically branded tokens. For now, Adams’ team continues to deny wrongdoing, while on-chain activity remains under review.

The NYC Token launch combined fast price appreciation, sharp liquidity movements and public denials from Eric Adams’ team. On-chain data shows large withdrawals, partial returns and unresolved gaps. As trading stabilizes at lower levels, questions around structure, disclosures and fund handling remain central.