Behind the $1 million profit of NYC Token deployer: Risk insights of the unilateral liquidity mechanism

NYC Token just launched and has already experienced a “roller coaster” market. According to the latest news, the wallet associated with the NYC Token deployer created a unilateral liquidity pool on the Meteora platform, withdrew about $2.5 million USDC at the peak, and then, after the token’s value dropped 60%, re-injected only $1.5 million, realizing a net profit of approximately $1 million. This reflects a typical risk pattern of celebrity coins.

How the Deployer’s Profit Operations Are Conducted

Based on on-chain analysis from Bubblemaps, the entire operation process is quite straightforward:

Timeline of Wallet 9Ty4M

• Created unilateral liquidity pool: launched on the Meteora platform
• During the price peak: withdrew about $2.5 million USDC
• During the token decline: waited for the price to fall about 60%
• Re-injected: only invested $1.5 million
• Final profit: $1 million net gain

The reason this operation can be successful lies in the deployer’s information and timing advantage. As the creator of the token, they have the most direct understanding of the project’s true value, market response, and liquidity conditions, allowing them to make large withdrawals and re-injections at optimal times.

Risks of the Unilateral Liquidity Mechanism

Single-sided liquidity is an innovative feature introduced by new DEXs like Meteora, allowing liquidity providers to supply only one asset instead of traditional token pairs. The mechanism itself is not problematic, but in the deployer’s operations, several risks are exposed:

• Information Asymmetry: Deployer holds inside project information that ordinary investors cannot access
• Timing Advantage: Knows the best moments to withdraw and re-inject
• Liquidity Control: As the main liquidity provider, the deployer’s actions directly influence market prices
• Exit Mechanism: Can cash out early by withdrawing liquidity

The Risk Characteristics of NYC Token Itself

This is not just about a single operation; NYC Token itself exhibits multiple risk signals. According to relevant information, the token was launched by former New York City Mayor Eric Adams, but project details are quite vague:

NYC Token Risk List

• Unclear purpose: claims to combat anti-Semitism and promote blockchain education, but specific mechanisms are undisclosed
• Opaque partners: no details on collaborating institutions
• Market cap volatility: surged from $700 million to a peak and then rapidly dropped to $95 million, a decline of about 85%
• Negative stance from the new mayor: Mayor Zohran Mamdani has explicitly stated he will not buy
• Historical controversy: Eric Adams has been controversial during his tenure over moral and conflict-of-interest issues

Investor Takeaways

This incident reflects the typical characteristics of celebrity coins. When a token is launched by a public figure, especially with unclear project details, insiders often have the highest profit potential. Deployers used the unilateral liquidity mechanism to make a profit of $1 million in a short period, while ordinary investors bore the risk of the token falling from its high point.

My personal view is that investors should be especially cautious of projects with undisclosed details, rapid market cap fluctuations, and significant information gaps between founders/deployers and ordinary investors. Although mechanisms like unilateral liquidity improve capital efficiency, they also provide more operational space for insiders.

Summary

The $1 million profit of the NYC Token deployer essentially results from a combination of informational and mechanistic advantages. This is not an isolated case but reflects the common risk features of celebrity coins. While unilateral liquidity is innovative, in projects with insufficient transparency, it tends to amplify the advantages of deployers. For investors, the key is to beware of tokens with unclear project details and volatile market caps, especially those launched by public figures with opaque mechanisms. The process of NYC Token dropping from $700 million to $95 million fully illustrates the risks involved.