A newly launched crypto token branded around former New York City mayor Eric Adams unraveled within hours of its debut, sparking allegations of insider manipulation and a large scale liquidity drain that wiped out millions in value. Marketed informally as the NYC token, the asset surged rapidly after launch, fueled by speculation that its association with a high profile political figure implied some form of legitimacy or civic backing. On chain data shows the token’s market capitalization briefly approached $600 million before reversing sharply. The sudden collapse triggered widespread losses among retail traders and renewed scrutiny of politically themed crypto launches. Analysts noted that the speed of the rise and fall, combined with opaque token distribution, mirrored patterns seen in previous high profile rug pull incidents across decentralized markets.
Blockchain analytics firms flagged a series of transactions that raised immediate red flags. Data shared publicly by Bubblemaps indicated that a wallet linked to the token deployer created a one sided liquidity pool and removed approximately $2.5 million in USDC near the price peak. After the token price fell by around 60%, the same wallet re added a smaller portion of liquidity while extracting close to $1 million in value. Additional analysis from Lookonchain suggested that total liquidity removed across related wallets exceeded $3 million, accelerating panic selling. Independent investigator Rune Crypto described the sequence of events as consistent with a rug pull, noting that liquidity withdrawals coincided precisely with peak market demand. Individual traders reported severe losses within minutes, including one wallet that lost nearly half a million dollars in less than 20 minutes.
Further compounding concerns was the token’s extreme ownership concentration. On chain records showed that a single wallet controlled roughly 70% of the total supply, while the top ten wallets collectively held close to 99%, giving insiders near total control over price action and liquidity conditions. Multiple imitation NYC tokens also appeared simultaneously, fragmenting liquidity and adding confusion for traders attempting to identify the original asset. While Eric Adams publicly framed the token as a political statement, investigators stressed that there was no official government involvement, no public funding, and no transparent governance structure behind the project. The episode has reignited debate over the risks of politically branded crypto assets, with critics warning that such launches can undermine investor trust and damage broader perceptions of the digital asset sector. Industry figures have increasingly cautioned that politically linked tokens, when launched without safeguards, create fertile ground for manipulation and rapid capital extraction, reinforcing calls for clearer standards and investor protections.
