Former New York City Mayor Eric Adams has broken his silence over the controversy surrounding the NYC Token, the Solana-based cryptocurrency he recently helped launch, denying accusations that he personally benefited from the token.

In a Jan. 14 statement shared on X, Adams’ spokesperson Todd Shapiro dismissed allegations that the former New York City mayor had removed investor funds or profited from the project’s early trading activity.

“Recent reports alleging that Eric Adams moved money out of the NYC Token are false and unsupported by any evidence,” Shapiro said.

The token, introduced by Adams as a way to promote civic engagement and combat antisemitism and anti-American sentiment, saw a surge in value shortly after going live on Tuesday. 

It peaked at a market capitalisation of $580 million, fueled by early trading enthusiasm. But within an hour, it collapsed by more than 80%, prompting swift backlash and speculation of a potential rug pull.

#PeckShieldAlert #RugPull Former NYC Mayor Eric Adams @ericadamsfornyc has reportedly executed a rugpull on his newly launched memecoin, $NYC. After the token was promoted on his personal social media, its liquidity was abruptly removed only 30 minutes post-launch, resulting in

Much of the concern stemmed from blockchain data circulated by crypto analysts.

Bubblemaps, a blockchain analytics platform, revealed that a wallet tied to the token’s deployer had removed $2.5 million in USDC liquidity at the peak of trading activity.

Despite this, Shapiro stood by Adams’ position, attributing the token’s volatility to normal market behavior and emphasizing that Adams had no financial motive in the venture. 

“His involvement was never intended for personal or financial gain,” Shapiro said.

Questions deepened after the NYC Token’s official X account posted shortly after the crash, stating that the team had “rebalanced the liquidity” using a Time-Weighted Average Price (TWAP) mechanism. 

It also said that additional funds had been added to the liquidity pool over time, rather than all at once, to help stabilise price movements in the wake of intense launch volatility.

As of the latest data, the NYC token is trading at approximately $0.138, with a market cap of a little over $40 million, where it has remained since the dramatic early correction.

In a Fox Business interview appearance following the launch, Adams explained the project’s core mission. 

He said that proceeds from the token would be funneled toward nonprofit initiatives aimed at addressing antisemitism and anti-Americanism through educational programs. 

Further, he mentioned plans to use funds to expand blockchain literacy and offer scholarships to students from underserved communities in New York City.

On the project’s website, however, not much information was found regarding the token’s future direction, other than plans to create “a decentralized financial ecosystem that’s as ambitious as the city itself.”

Shapiro reiterated those goals in his closing remarks. 

“The NYC Token is designed as a free, voluntary way to support educational and nonprofit efforts. Claims suggesting otherwise are inaccurate,” he said. 

Adams, he added, “remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.”

Adams was one of the most vocal political supporters of cryptocurrency during his time in office and led several major initiatives to integrate blockchain into the city’s ecosystem.

During his tenure, Adams established the Office of Digital Assets and Blockchain Technology and later formulated the NYC Blockchain Plan to promote responsible innovation and attract Web3 businesses to New York City.

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