Former New York City Mayor promotes "NYC Token" surge and fall back: $200 million market cap halved within an hour, celebrity coin risk reappears

Former New York City Mayor Eric Adams has launched a cryptocurrency project called “NYC Token” after leaving office. The token briefly surged to a market cap of $200 million after launching on the Solana network, but quickly fell back to $93.98 million. This “rise and fall” reflects the market’s deep skepticism toward the project.

Event Overview: From Times Square to Market Reaction

Adams introduced NYC Token publicly in Times Square, claiming the project aims to raise funds to combat anti-Semitism, anti-American sentiments, and promote blockchain education for children. While these statements sound grand, the project team has remained silent on key details.

How big is the information black hole

According to the latest news, Adams has not disclosed the following core information:

• Who are the project partners
• The specific issuance date
• How the funds will be used
• The project’s operational mechanism
• The token distribution plan

The only promise is that “ordinary New Yorkers can participate in investment.” This extreme lack of transparency has directly led to market caution.

What does market reaction tell us

The market cap dropped from $200 million to $93.98 million within an hour, indicating that investors are voting with their feet. The initial surge may have been driven by celebrity effect and short-term hype, but the rapid decline shows investors quickly realized the project’s issues. This “one-day wonder” price fluctuation is typical of celebrity coins.

Adams’ Background: Support and Controversy Coexist

To understand the risks of this project, it’s important to know Adams’ background. During his tenure as NYC mayor, he was a strong supporter of the crypto industry and was even called the “Bitcoin Mayor.” However, he also faced controversy over moral and conflict of interest issues.

This background makes his current crypto project appear more “suspicious.” New York City Mayor Zohran Mamdani has already stated he will not purchase the token, which in itself is a risk warning.

The Typical Fate of Celebrity Coins

This is not the first cryptocurrency launched by a celebrity. Historically, celebrity coins tend to have the following characteristics:

• Gained attention initially due to celebrity effect, with rapid price increases
• Lack of real project foundation and operational team
• Opaque information, making thorough due diligence impossible
• Volatile prices, easily manipulated for pump-and-dump schemes
• In the long run, most celebrity coins end up worthless

Summary

The launch of NYC Token and its subsequent rise and fall once again demonstrate the high-risk nature of celebrity coins. From opaque information and lack of basic disclosures to swift market reactions, all signals tell investors: this is not a project worth participating in.

According to the latest news, ChainCatcher has warned users that the authenticity of this token is yet to be confirmed. Celebrity coin prices are highly volatile and uncertain, so caution is advised. This warning is worth serious consideration for anyone thinking about involvement. In the crypto market, FOMO often leads to the most expensive lessons.