Eric Adams Launches NYC Token: A Solana-Based Meme Coin to Tackle Hate

Former New York City Mayor Eric Adams has launched a Solana-based meme coin, which he says will help combat rising hate and inspire the next wave of innovation in the city.

Summary

  • Former New York Mayor Eric Adams has launched the NYC token, a Solana-based cryptocurrency that has stirred controversy.

  • The token initially surged to a $580 million market cap before experiencing a sharp downturn.

  • Adams stated that the proceeds from the token would support nonprofits, blockchain education, and scholarships.

On January 13, Adams announced the launch of the NYC token via a post on X (formerly Twitter), highlighting its purpose as a means to fight against the rising tide of antisemitism and anti-Americanism in New York City and beyond. The token quickly became available for trading on the Solana-powered decentralized exchange, Jupiter.

In his announcement, Adams expressed enthusiasm, stating, “Proud to launch @buynyctoken, a new token built to fight the rapid spread of antisemitism and anti-Americanism across this country and now in New York City.” His accompanying video, filmed from a taxi, indicated his belief that the initiative would “take off like crazy.”

However, while the NYC token initially soared to a price of $0.58 and reached a market cap of $580 million—data sourced from DEXScreener indicated this—its value rapidly declined, dropping below $130 million soon after. This steep fall raised eyebrows within the cryptocurrency community.

Many community members began to suspect foul play, claiming the project team might have deliberately reduced liquidity. Crypto analyst Rune identified that approximately $3.4 million had been extracted from the token’s liquidity pools. Supporting this claim, analytics from Bubblemaps pointed out that a wallet associated with the token’s deployer withdrew about $2.5 million in USDC when the token was at its apex.

In response to the steep drop, roughly $1.5 million in USDC was added back into the liquidity pool after prices tumbled by over 60%. However, the remaining $900,000 went unreturned, adding fuel to the suspicion surrounding the project’s intentions.

While these allegations remain unverified, the NYC token’s official account issued a statement asserting that the team is employing Time-Weighted Average Price (TWAP) mechanisms to maintain price stability. They claimed that funds are being gradually reintegrated into the liquidity pool to mitigate market disruptions in the wake of the initial volatility.

Nonetheless, concerns of a potential rug pull linger among crypto enthusiasts and investors, provoked by the timing and magnitude of liquidity withdrawals.

NYC Token Aimed at Social Causes

Despite the controversies surrounding liquidity management, Adams emphasized in a Fox Business interview that the NYC token aims to channel proceeds towards nonprofits combating antisemitism and anti-Americanism. He outlined objectives that include promoting education about hate and funding blockchain initiatives and scholarships for underprivileged students.

According to the project’s official documentation, the distribution of the NYC tokens is as follows: 40% allocated for community rewards, 25% for liquidity, 15% for development, and the remaining 20% split between marketing and the project team.

The token’s website also promises a vision of creating “a decentralized financial ecosystem that’s as ambitious as the city itself,” although finer details on how this vision will be realized are not yet available.

Adams, who officially stepped down as mayor on January 1 and was succeeded by Zohran Mamdani, has been a strong advocate for cryptocurrency during his tenure. Notably, he converted his first three paychecks into Bitcoin and Ethereum, initiated the Office of Digital Assets and Blockchain Technology, and launched the NYC Blockchain Plan, aimed at promoting responsible innovation and attracting Web3 businesses to the city.

As the NYC token continues to develop, both its supporters and detractors are closely monitoring its trajectory in the often unpredictable landscape of cryptocurrency.