- Some members of the crypto community accused the project team of removing liquidity, raising concerns about a possible rug pull.
- Crypto analyst Rune flagged that $3.4 million was taken from the token’s liquidity pool.
- Bubblemaps showed about $2.5 million in USDC was removed near the token’s peak, of which roughly $900,000 was not returned after partial additions.
Former New York City mayor Eric Adams launched a meme token on Solana that he says is intended to combat antisemitism and support the next wave of innovation in the city.
The token, named the New York City token (NYC), was announced in a post on X on January 13 and quickly became available for trading on the Solana decentralized exchange Jupiter.
In the announcement, Adams shared a link to the token’s official site and said the project was created to address the spread of antisemitism and anti-American sentiment in the United States and New York City.
The NYC token initially saw strong momentum after trading began.
According to DEXScreener data, it rose to a high of $0.58 and briefly reached a market capitalization of $580 million.
Liquidity movements spark rug pull accusations
As the price declined, accusations circulated online that the team behind the token may have removed liquidity, fueling concerns the launch could be a rug pull.
Crypto analyst Rune reported that at least $3.4 million was spent from the token’s liquidity pool.
Separately, analytics posted by Bubblemaps indicated a wallet associated with the token deployer removed $2.5 million in USDC liquidity when the token was trading near its peak.
After the price had already dropped more than 60%, about $1.5 million in USDC was added back into the pool.
However, roughly $900,000 was not returned, which heightened suspicion among some community members and investors.
These allegations have not been independently confirmed, but the timing and size of the liquidity movements quickly became a focal point of discussion.
Team cites TWAP strategy to manage volatility
In response to concerns, the token’s official X account stated that the project uses Time-Weighted Average Price (TWAP) mechanisms to help stabilize price action.
The account said funds are being added gradually to the liquidity pool to reduce the risk of further disruption after the initial volatility observed at launch.
Despite that explanation, the episode drew attention to how liquidity is managed for newly launched meme tokens, particularly when trading activity can spike rapidly on decentralized markets.
Site details, token allocation and proposed uses
While the token’s official website provides limited information about the project’s long-term roadmap, Adams said in a Fox Business interview that proceeds from the NYC token will go to nonprofits focused on raising awareness about antisemitism and anti-American sentiment through educational campaigns.
Other proposed use cases include funding blockchain and cryptocurrency education and providing scholarships for students from under-resourced communities.
Adams officially stepped down as mayor on January 1, after being succeeded by Zohran Mamdani.
During his time in office, he was one of the most active political proponents of cryptocurrency.
His initiatives included converting his first three paychecks to Bitcoin and Ethereum, creating the Office of Digital Assets and Blockchain Technology, and launching a New York blockchain plan to encourage responsible innovation and attract Web3 businesses.