Former New York City Mayor's token project drops 60% upon launch: market caution or overreaction?

【Blockchain Rhythm】Last week, a major event shook the crypto community—former New York City Mayor Eric Adams launched the NYC Token, which experienced a rollercoaster ride within just a few hours of going live.

Specifically, the token’s market cap initially surged to $580 million, and investors were celebrating. Unexpectedly, it then plummeted to $130 million. The magnitude of the fluctuation caught many off guard.

The issue arose. Blockchain analysis tools detected some suspicious activity—wallets associated with the project withdrew about $2.5 million in liquidity at the peak price. Although this address later re-injected $1.5 million, approximately $900,000 has not been returned, raising suspicions.

Voices on social media grew louder. Many users directly accused Adams of a “rug pull”—a scam where the project promotes itself and then runs away with the funds. Adams has been a public supporter of cryptocurrencies and recently stated at an event that part of the funds from NYC Token would be used to combat anti-Semitism, counter anti-American projects, and promote blockchain education among youth.

Regarding the project, the total supply of NYC Token is 1 billion tokens, with the project team set to receive a 10% profit share. However, the issue is that Adams has not disclosed specific information about the team members, which raises transparency concerns.

So far, no official investigation results have been released. This incident once again reminds everyone—even with celebrity-backed projects, caution is essential. Data and liquidity changes are always the most straightforward signals.