Former New York mayor Eric Adams under fire after NYC Token collapses after launch

By Jules Rimmer

NYC Token lost 80% of its value within minutes after a wallet associated with the token's developer withdrew liquidity and sold tokens.

Eric Adams has been a longstanding promoter of cryptocurrency and wanted to make New York "the crypto capital of the world."

Eric Adams is no stranger to controversy and just days since leaving office after four tumultuous years as mayor of New York, he is now embroiled in a fresh scandal.

This latest firestorm surrounds his promotion of a cryptocurrency memecoin called NYC Token that launched on Monday and promptly plummeted in value, losing 80% of its peak capitalization, $580 million, within a few hours of issuance.

It has subsequently traded around 13 cents having rose as high as 58 cents, according to DexScreener data.

Analytics provided by Bubblemaps, an analytics platform that maps token and crypto wallet activity, said a wallet associated with Adams sold out a large percentage of its $2.5 million holding. The withdrawal of liquidity prompted a panic among investors and the currency plunged in value.

In a statement, the coin operator, over social media, said "partners had to rebalance the liquidity. We are aware of reports flagging the transactions removing liquidity from the pool."

They added that additional funds were added to the pool.

Adams, a longstanding advocate of cryptocurrencies whose declared ambition was to make New York's the world's cryptocurrency capital, encouraged investors to participate in the coin , the proceeds of which, he said, would help fight the spread of antisemitism and anti-Americanism,

MarketWatch has attempted to contact Adams but has not received a reply yet.

-Jules Rimmer

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

01-13-26 1022ET