Former New York City Mayor Eric Adams has dismissed claims that his new digital currency, NYC Token, was linked to suspicious cash withdrawals that allegedly caused huge losses to investors.
Most important key points:
- Eric Adams denies transferring funds and blames NYC Token’s losses on early market volatility.
- The project recognizes a temporary rebalancing of liquidity at launch.
- Blockchain data has indicated significant withdrawals, raising concerns about sudden withdrawals.
In a statement released Tuesday on Adams
The statement added that Adams did not touch investor funds or profit from the token’s launch, emphasizing that “no funds were withdrawn from the New York City token.”
The New York cryptocurrency development team attributes the post-launch price drop to early volatility.
Shapiro described sharp fluctuations in the token’s price as a familiar feature of early-stage cryptocurrency projects.
“Like many recently launched digital assets, NYC Token has experienced market volatility,” he said, describing the disruptions as a market-driven event rather than a coordinated drawdown.
This response follows increased scrutiny of activity on the blockchain surrounding the New York token, which suffered a sharp decline shortly after its launch.
The project itself admitted to making liquidity adjustments, saying it needed to “rebalance” amid high demand.
In a post on X, the team said its partners temporarily withdrew funds to implement time-weighted average pricing and then added additional capital to the liquidity pool.
Statement from Todd Shapiro, spokesperson for former New York Mayor Eric Adams: pic.twitter.com/kza4UGvApJ
– Eric Adams (@ericadamsfornyc) January 14, 2026
These explanations failed to calm the critics. Independent analysts pointed out that the trades appeared to be draining liquidity as peak prices approached, sparking concerns among traders.
One of the first warnings came from Rune Crypto, which claimed that nearly $3.4 million in liquidity had been withdrawn shortly after its launch and accused the project of acting as a sweepstakes operation.
Blockchain data visualization platform Bubblemaps also highlighted unusual patterns.
According to his analysis, a wallet connected to the token’s launcher withdrew about $2.5 million in USDC near the market peak, then added about $1.5 million after the token’s price fell more than 60%.
Bubblemaps: 60% of New York cryptocurrency traders lost money after launch
Bubble charts showed the extent of traders’ losses. Of the approximately 4,300 participants, an estimated 60% of them ended the first hours of cryptocurrency trading with losses.
Most losses were less than $1,000, but around 200 traders lost between $1,000 and $10,000. A smaller group suffered losses in the tens of thousands of dollars, while at least 15 traders lost more than $100,000.
THE $NYC later
4,300 traders in total, 60% money lost:
• 2,300 lost < $1,000
• 200 people lost between $1,000 and $10,000
• 40 people lost between $10,000 and $100,000
• 15 people lost more than $100,000 pic.twitter.com/HjYGj5bSBG– Bubble Maps (@bubblemaps) January 14, 2026
The Adams camp emphasized that NYC Token was introduced as a way to support nonprofit initiatives and community education, not as a speculative investment.
However, this incident has raised concerns about transparency, particularly regarding governance and liquidity management.
The project’s website states that the token is deployed on the Solana platform with a total supply of 1 billion tokens, of which 70% are allocated to a reserve excluded from the circulating supply.
Although the team cited unnamed partners in its liquidity metrics, it has yet to release a precise breakdown, leaving questions of oversight and accountability unresolved.
The post Eric Adams Dismisses Rug Pull Claims Related to New York Token Despite Huge Losses appeared first on Cryptonews Arabic.