- Some members of the crypto community accused the project team of removing liquidity, sparking fears of a rug pull.
- On-chain analyst Rune flagged data suggesting about $3.4 million was removed from the token’s liquidity pool.
- Bubblemaps data showed $2.5 million in USDC was withdrawn near the token’s peak, while roughly $900,000 was not returned after partial re-additions.
Former New York City mayor Eric Adams has launched a Solana-based meme token that he says aims to combat antisemitism and support the next phase of innovation in the city.
The token, called the New York City token (NYC), was announced in a post on X on January 13 and quickly went live for trading on Solana’s decentralized exchange Jupiter.
In the post, Adams shared a link to the token’s official website and stated the project was created to fight the spread of antisemitism and anti-American sentiment in the United States and New York City.
The NYC token initially gained strong momentum after trading began.
It rose to a peak of $0.58 and briefly reached a market capitalization of $580 million according to DEXScreener data.
Liquidity movements spark rug pull allegations
As the price declined, online accusations emerged that the team behind the token may have removed liquidity, intensifying worries about a potential rug pull.
Crypto analyst Rune highlighted data indicating that at least $3.4 million had been withdrawn from the token’s liquidity pool.
Separate analysis published by Bubblemaps suggested a wallet associated with the token deployer removed $2.5 million in USDC liquidity as the token approached its peak.
After the price had already dropped more than 60%, about $1.5 million in USDC was reportedly returned to the pool.
However, roughly $900,000 was not returned, which further heightened suspicion among some community members and investors.
These allegations have not been independently confirmed, but the timing and scale of the liquidity movements quickly became a central focus of discussion.
Team points to TWAP strategy to manage volatility
In response to concerns, the NYC token X account issued a statement saying the project employs Time-Weighted Average Price (TWAP) mechanisms to help manage price stability.
The account explained that funds were being gradually added back to the liquidity pool to reduce the risk of further disruption after the initial volatility observed at launch.
Despite this explanation, the episode kept attention on how liquidity is handled for newly launched meme tokens, particularly when trading activity surges quickly on decentralized markets.
Website outlines token allocation and proposed uses
Although the token’s official website offers limited detail on long-term strategy, Adams said in an interview with Fox Business that proceeds from the NYC token would go to nonprofits focused on raising awareness about antisemitism and anti-American sentiment through educational campaigns.
Other proposed uses include funding blockchain and crypto education programs and providing scholarships for students in underserved communities.
Adams officially left office on January 1, having been succeeded by Zohran Mamdani.
During his time in office, Adams was one of the more outspoken political figures supporting cryptocurrencies.
His initiatives included converting his first three paychecks to Bitcoin and Ethereum, creating an Office of Digital Assets and Blockchain Technology, and launching the NYC Blockchain Plan to promote responsible innovation and attract Web3 companies.