- Some members of the crypto community accused the project team of removing liquidity, fueling fears of a potential rug pull.
- Analyst Rune reported data indicating that approximately $3.4 million was drained from the token’s liquidity pool.
- Bubble map analytics showed about $2.5 million in USDC removed near the peak, and around $900,000 remained unrecovered after partial replenishments.
Former New York City mayor Eric Adams has launched a Solana-based meme token 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 on January 13 on X and quickly became tradable on Jupiter, a decentralized exchange on Solana.
In his announcement, 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 both the United States and New York.
The NYC token experienced strong initial momentum after trading began.
It briefly peaked at $0.58, reaching an implied market capitalization of around $580 million according to DEXScreener data.
Liquidity movements spark rug-pull allegations
As the token price declined, accusations surfaced online that the team behind the token may have removed liquidity, heightening concerns about a potential rug pull.
Crypto analyst Rune shared data suggesting that at least $3.4 million had been withdrawn from the token’s liquidity pool.
Separately, bubble-map analytics indicated that the wallet associated with the token’s launch pulled roughly $2.5 million in USDC liquidity when the token was trading near its peak.
After the price had already fallen more than 60%, about $1.5 million in USDC was reportedly added back to the pool.
Despite that partial replenishment, roughly $900,000 remained unrecovered, which increased suspicions 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 focal point of discussion.
Team cites TWAP strategy to manage volatility
In response to concerns, the NYC token’s X account posted a statement saying the project employs time-weighted average price (TWAP) mechanisms to stabilize pricing.
The account explained that funds are being added back into the liquidity pool gradually to reduce the risk of further disruption following the launch’s initial volatility.
Even with that explanation, the episode raised broader attention about how liquidity is managed in newly launched meme tokens—especially when trading activity surges rapidly on decentralized venues.
Website details token allocation and proposed use cases
The token’s official website provides limited detail about the project’s long-term roadmap, but Adams told Fox Business that proceeds from the NYC token will be directed to nonprofits focused on raising awareness about antisemitism and anti-American sentiment through educational campaigns.
Other proposed uses include funding blockchain and crypto education and awarding scholarships to students in underserved communities.
Adams officially left the mayor’s office on January 1, when Zohran Mamdani succeeded him.
During his term, Adams was one of the more vocal political proponents of cryptocurrencies and related initiatives.
His administration converted the first three payrolls to Bitcoin and Ethereum, established the Office of Digital Assets and Blockchain Technology, and launched the NYC Blockchain Plan to encourage responsible innovation and attract Web3 businesses.