- Some members of the cryptocurrency community accused the project team of removing liquidity, raising concerns about a potential “rug pull.”
- Analyst Rune flagged data suggesting $3.4 million was taken from the token’s liquidity pool.
- Bubble maps showed $2.5 million USDC removed near the token’s peak, with about $900,000 not returned after partial re-adds.
Former New York City Mayor Eric Adams launched a meme coin built on Solana, which 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 January 13 post on X and was quickly made available for trading on the Solana decentralized exchange Jupiter.
In his post, Adams shared a link to the token’s official website and stated the project was created to counter the spread of antisemitic and anti-American views in the United States and New York.
The NYC token initially gained strong momentum after trading began.
According to DEXScreener data, the price briefly rose to a high of $0.58 and the token momentarily reached a market capitalization near $580 million.
Liquidity movements spark “rug pull” accusations
As the price fell, online accusations emerged that the team behind the token might have removed liquidity, intensifying fears of a possible “rug pull.”
Cryptocurrency analyst Rune reported data indicating at least $3.4 million was withdrawn from the token’s liquidity pool.
Separately, analyses published by Bubblemaps suggested a wallet associated with the token’s deployer removed $2.5 million in USDC liquidity while the token was trading near its peak.
After the price had already dropped by more than 60%, roughly $1.5 million was added back to the pool.
Nevertheless, about $900,000 remained unreturned, which further fueled suspicion among some community members and investors.
The allegations have not been proven, but the timing and size of the liquidity movements quickly became central points of discussion.
The team cites TWAP strategy to manage volatility
Responding to concerns, the token’s official NYC X account released a statement saying the project uses Time-Weighted Average Price (TWAP) mechanisms to help manage price stability.
The account explained that funds are being added to the liquidity pool gradually to reduce the risk of further disruption after the initial volatility seen at launch.
Despite this explanation, the episode kept focus on how liquidity is managed for newly launched meme coins, especially as trading activity can surge rapidly on decentralized markets.
Website details, token splits and proposed uses
Although the token’s official website offers limited information about the project’s long-term direction, Adams said in an interview that proceeds from the NYC token will be directed to nonprofit organizations focused on raising awareness about antisemitism and anti-American sentiment through educational campaigns.
Other proposed uses include funding blockchain and cryptocurrency education and providing scholarships for students from underserved communities.
Adams officially left office on January 1, after being succeeded by Zohrana Mamdani.
During his tenure he was among the most outspoken politicians in support of cryptocurrencies.
His initiatives included converting the first three paychecks to Bitcoin and Ethereum, creating the Office of Digital Assets and Blockchain Technology, and launching the NYC Blockchain Plan to encourage responsible innovation and attract Web3 companies.