Former New York City Mayor's coin plummets 80% in 30 minutes; on-chain data reveals suspicious liquidity manipulation

The NYC Token launched by former New York City Mayor Eric Adams experienced a collapse within just a few hours of going live. According to the latest reports, the token’s market cap plummeted from a peak of $580 million to $130 million, a decline of over 77%. On-chain analysis platform Bubblemaps pointed out that wallets associated with the project deployer conducted suspicious liquidity extraction at the high price point, sparking widespread Rug Pull accusations.

Market Cap Collapse and Liquidity Anomalies

Price Trends and Investor Losses

After launching on the Solana network on January 13, NYC Token’s market cap briefly surged to approximately $580 million (some data shows it peaked near $700 million), but then rapidly fell to around $130 million. This means investors experienced over 80% asset loss within just a few hours. Numerous users on social platform X accused Adams of “rug pull,” meaning they believe funds were withdrawn for profit after promoting the project.

On-Chain Data Reveals Suspicious Behavior

Bubblemaps’ analysis shows more specific issues. Wallets linked to the project deployer withdrew about $2.5 million in liquidity at the high price point. Although this address re-injected about $1.5 million after the token price dropped roughly 60%, approximately $900,000 remains unrecovered. This “withdraw-then-replenish” pattern is characteristic of a typical Rug Pull.

Further reports disclose that a wallet suspected to be an insider made a purchase 10 minutes before the official announcement. While it initially gained unrealized profits of $250,000, it ultimately suffered a loss of $477,000. This indicates that even insiders suffered significant losses due to the token’s sharp decline.

Serious Flaws in Project Information

Lack of Transparency and Unclear Team Identity

According to quick reports, the NYC Token official website states the total supply is 1 billion tokens, with the project team entitled to 10% of the profits. However, Adams has not disclosed the specific members of the team, which is a major red flag in crypto projects. During the launch, Adams also did not specify how the token would specifically combat anti-Semitism, nor did he reveal partners, issuance timeline, or detailed fund usage plans.

Discrepancy Between Project’s Intent and Reality

Adams claims that funds from NYC Token will be used to fight anti-Semitism, anti-“America” projects, and to promote blockchain education among youth. He states he will not take a salary from the project at present but may reconsider in the future. This vague promise contrasts sharply with the immediate liquidity anomalies observed after the project’s launch.

Market Reaction and Community Skepticism

The market response to NYC Token was swift and cold. While some early investors participated, most became victims. According to reports, a crypto KOL spent 820,000 USDC to buy 6.98 million NYC tokens in the past 4 hours, attempting to bottom out during the decline, but such actions carry significant risk.

New York City Mayor Zohran Mamdani has publicly stated he will not purchase the token, further weakening political support for the project. Public opinion on social media is almost unanimously accusing Adams of fraud, with many users viewing this as a typical crypto scam.

Future Outlook and Impact Assessment

Currently, there are no official investigation conclusions regarding the allegations, but the incident has already attracted widespread attention within the crypto community and mainstream media. Possible developments include:

• U.S. regulators may initiate investigations, especially considering the involvement of political figures
• NYC Token investors might seek legal remedies
• This case will further heighten public awareness of meme coins and political figures involved in crypto projects

From a broader perspective, this event highlights the severity of information asymmetry in the crypto market. Even projects launched by politically prominent individuals can carry serious risks and issues.

Summary

Everything that happened within the 30 minutes from NYC Token’s launch to its collapse points to a single conclusion: the project’s information is severely opaque, the team’s identity is unclear, and the on-chain liquidity manipulation patterns align with typical Rug Pull characteristics. Although official investigation results are yet to be released, this case serves as a warning in crypto investing—regardless of how prominent the issuer’s identity is, investors must conduct thorough due diligence on the project’s fundamentals. The involvement of political figures does not enhance credibility for a lack of transparency; instead, it may signal increased risk.