Former New York Mayor’s NYC memecoin rugpulls investors at launch, and the method used was shockingly brazen

The NYC Token Debacle: Eric Adams’ Launch Fallout

On January 12, 2025, the NYC Token, associated with former New York Mayor Eric Adams, hit the market on the Solana blockchain, only to plummet dramatically in a matter of minutes. Within approximately 30 minutes, the token’s value dropped over 81%, erasing about $500 million in peak paper value and reducing its estimated market cap from a promising $540 million to a mere $87 million–$110 million.

The Launch Event and Vision Behind NYC Token

Adams unveiled the NYC Token during a high-profile event in Times Square, just 12 days after leaving office. He framed the launch as part of a broader initiative aimed at funding blockchain education and combatting antisemitism—a cause he has publicly championed. Promotion of the token went through his verified X account, but the launch was met with scrutiny and skepticism. Annotations from X’s Community Notes flagged the project with warnings related to potential scams, specifically marking it as a “rug pull.”

Rapid Decline: Investigators Step In

The swift descent of the NYC Token attracted the attention of on-chain investigators, who began scrutinizing liquidity movements and the concentration of token holdings. Data from Bubblemaps revealed concerning patterns: a wallet connected to the token’s deployer created a one-sided liquidity pool on the Meteora exchange and then withdrew approximately $2.5 million in USDC right as the token peaked in value. This transaction was followed by a reinjection of about $1.5 million into the liquidity pool after the token’s price had already plunged by over 60%, leaving a significant amount—around $932,000—unaccounted for.

The token’s supply was highly centralized, with the top five wallets holding an alarming 92% of the total supply and the top ten controlling about 98.73%. One particularly dominant wallet alone accounted for roughly 70% of the distribution.

Retail Investor Losses: A Cautionary Tale

For retail investors, the fallout was bitterly evident. A wallet tracked by Solscan executed five transactions totaling 745,725 USDC before selling for just 272,177 USDC—resulting in a loss of approximately $473,548 in under 20 minutes. The drastic price drop and centralized ownership meant that asset valuations depended heavily on a few wallets, exacerbating volatility during exits and creating heightened slippage risks on decentralized exchanges (DEXs).

Market Context and Regulatory Backdrop

The NYC Token’s launch occurred amidst a turbulent landscape for crypto assets linked to politicians and celebrities. Several such tokens had faced scrutiny for practices involving insider allocations and high fee extraction, contributing to steep declines similar to NYC’s 81% crash. Tokens like TRUMP and MELANIA have also seen significant drops, reflecting a broader crisis of confidence in politically-linked cryptocurrencies.

Despite these red flags, the NYC Token was able to enter the market due to a regulatory environment that remains loosely defined for such ventures. A February 2025 statement by the SEC indicated many memecoins do not qualify as securities, as they are generally purchased for cultural and entertainment purposes. The agency did warn, however, that fraudulent activity could still be pursued by authorities at various levels.

In New York, pending legislation aims to define and criminalize "rug pull" activities, a shift that could establish formal regulations around token launches and liquidity provisions. For the NYC Token, questions linger about transparency and financial structure: Who financed the launch? What agreements were in place regarding liquidity? And did promotional representations align with actual on-chain movements?

Adams’ Continued Crypto Engagement and Its Implications

Eric Adams is no stranger to the crypto scene; he’s long linked his political identity with digital currencies. In early 2022, he converted his first paycheck as mayor into Bitcoin, and during that year, he publicly pledged to receive his first three paychecks in cryptocurrency. His former political capital took a hit after the NYC Token debacle, marked by a downturn in his political fortunes following a lost Democratic primary bid in 2025.

Conclusions and Future Outlook

Ultimately, the saga of the NYC Token highlights the precarious nature of cryptocurrency markets and the specific challenges faced by tokens tied to public figures. The rapid devaluation raises serious questions about the integrity and sustainability of such projects, particularly in an evolving regulatory landscape.

In a world where high-profile figures can launch memecoins, the stakes are higher than ever for retail investors. While some tokens might see slow declines in value through methodical liquidity withdrawal, others, like the NYC Token, can obliterate investor trust in mere minutes. As the crypto landscape evolves, it remains crucial for potential investors to tread cautiously, prioritizing due diligence and skepticism in the face of promising yet volatile opportunities.