NYC Token Plummets 80% Post-Launch: Mayor Eric Adams Denies Personal Profit

Just days after its highly publicized debut, the NYC Token has cratered—losing 80% of its value. The digital asset, tied to the city's brand, now faces intense scrutiny as investors reel from the sudden collapse.

Political Promises Meet Crypto Volatility

Mayor Eric Adams moved quickly to distance himself from the financial fallout. In a public statement, he firmly denied profiting from the token's launch or its subsequent trading activity. The denial comes amid growing questions about the due diligence behind municipal-backed digital assets.

A Stark Reminder for Digital Finance

The episode serves as a brutal case study in tokenomics—where hype and reality often diverge at a staggering 80% clip. It's the kind of volatility that makes traditional Wall Street bankers smirk into their overpriced coffee, wondering if 'decentralization' is just a fancy word for 'unregulated rollercoaster.'

For the crypto sector, it's another reputational hurdle. For city officials, a masterclass in the risks of blending public identity with speculative digital markets. The only thing dropping faster than the token's price might be political appetite for similar experiments.

Fraud claims erupt as NYC token crashes

Just after the spokesperson shared his remarks, allegations of fraudulent activity began to surface. This occurred at a time when the NYC Token dropped to more than 80% in the early hours of trading. 

The backlash intensified after on-chain analysts flagged unusual liquidity changes in the token’s smart contract, which critics liken to a “rug pull,” causing the token’s price to collapse.

Responding to these allegations, several crypto analysts had placed strong bets that Adams’ team could have withdrawn funds, resulting in a total loss of more than $3.4 million for investors.

Nonetheless, even with these assumptions raised, Shapiro still insisted that these allegations lacked credibility due to an absence of evidence. Afterwards, he released a statement stating that, “At no time was his involvement meant for personal or financial gain,” pointing out market volatility as the primary cause of the token’s substantial decline.

Still, criticism of Adams’ team continued to intensify, but Shapiro maintained his stance that no funds had been withdrawn from the NYC Token. However, sources reported that his statement appeared to differ from an earlier message displayed on the NYC Token’s X post. 

According to this X post, the individual managing the token’s X account claimed that it had modified liquidity provisions in response to overwhelming initial demand. Additionally, more funds were added to the liquidity pool of the NYC Token, according to a post on the X account. 

Meanwhile, during an interview with FOX Business, Adams discussed what they intend to do with the funds from the NYC Token. According to him, they plan to allocate these funds to non-profits that seek to initiate efforts to ensure all individuals have a better understanding of antisemitism and anti-Americanism via educational programs. 

Shapiro still insists Adams did not transfer funds from the NYC Token

The former mayor, who presented himself as a strong advocate for crypto, claimed that apart from funding these non-profits, the funds WOULD also establish a scholarship program to support students in marginalized communities in New York. 

Following his remarks, Shapiro affirmed that the controversial introduction of the NYC Token has not interfered with Adams’ strong commitment to these initiatives. 

“Mr Adams is still dedicated to responsible innovation and using new technologies to build trust, education, and shared civic values,” he said.

In the meantime, data from DEXScreener noted that the current price of the Solana-based token is approximately $0.133. Interestingly, the token has maintained this price unchanged since it declined from $0.475 just after its introduction. 

Since attaining this early peak, reports alleged that the total losses incurred amount to more than $400 million from the NYC Token’s market capitalization.

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