Solana Memecoin Turmoil: NYC Token Collapse Exposes Celebrity-Endorsement Risks

In January 2026, the cryptocurrency community witnessed a dramatic cautionary tale involving Solana-based memecoins and celebrity endorsements. NYC Token, a solana memecoin promoted by former New York City Mayor Eric Adams, experienced a catastrophic 80% crash from its peak market capitalization of $580 million, erasing over $400 million in value. The token's price plummeted from $0.47 to $0.13, leaving approximately 60% of its 4,300 traders with significant losses. The situation intensified when on-chain data revealed a $3 million liquidity withdrawal coinciding with the token's collapse, raising serious questions about transparency and accountability in celebrity-backed cryptocurrency projects. This incident underscores the volatile nature of memecoins built on high-throughput blockchains like Solana, where rapid price appreciation can be followed by equally swift declines. While Solana's ecosystem continues to demonstrate technological robustness for decentralized applications, this event highlights the persistent risks associated with speculative assets lacking fundamental utility, particularly when promoted by public figures. The aftermath may prompt increased regulatory scrutiny toward celebrity endorsements in crypto and reinforce the importance of due diligence for investors navigating the memecoin landscape. Despite this setback, Solana's underlying infrastructure remains a significant player in blockchain development, though this episode serves as a stark reminder that technological capability does not immunize projects from market speculation and governance challenges.

Eric Adams Denies Profiting From NYC Token as Solana-Based Memecoin Crashes 80%

Former New York City Mayor Eric Adams faces scrutiny after on-chain data revealed a $3 million liquidity withdrawal from NYC Token, a Solana-based memecoin that collapsed 80% from its $580 million peak market cap. The token, which Adams promoted on social media, now trades at $0.13—down from its $0.47 high—erasing over $400 million in value.

Approximately 60% of 4,300 traders incurred losses, with 15 individuals losing more than $100,000 each during the token's volatile debut. Adams' team denies removing funds, while the project claims liquidity was 'rebalanced' due to demand. Blockchain analysts highlight the withdrawal coincided with the token's steepest decline.

Solana ETFs Draw $10.8M Inflows as Technicals Suggest Breakout Potential

Solana-focused exchange-traded funds recorded $10.8 million in net inflows during a single trading session, extending a 30-day streak of institutional demand. The cryptocurrency closed at its highest level since early November, with technical indicators flashing bullish signals.

Key resistance looms between $145-$148—a breach could propel SOL toward $160-$180 targets. The asset has established higher lows above the $125-$130 support zone, forming what chart analysts describe as a "recovery base." Momentum indicators like velocity RSI hover NEAR historic lows that previously preceded rallies, suggesting exhausted selling pressure.

Institutional flows mirror broader crypto ETF trends. U.S. spot Bitcoin ETFs saw $844 million net inflows on January 14, led by BlackRock's IBIT with $648 million. ethereum products attracted $175 million during the same period.

Solana Price Prediction: SOL Turns Bullish Amid Major Resistance Reclaim

Solana (SOL) has reclaimed the $144–$148 resistance zone, signaling a potential shift to neutral-bullish market structure. A confirmed daily close above $144 could propel the price toward $155–$165, with analysts eyeing higher liquidity zones. The double bottom formation near $126 reinforces bullish sentiment, provided higher lows hold.

Macro technical patterns suggest a longer-term target of $220–$260 if key support levels remain intact. The recent impulsive MOVE reflects renewed buyer interest, though confirmation awaits sustained momentum. Market structure has transitioned from lower lows to higher lows, marking a departure from bearish conditions.

Crypto Tony highlights the $144–$148 band as a critical decision point, now retested as former support-turned-resistance. This level coincides with the midpoint of SOL's broader corrective range, making its hold pivotal for trend continuation.

State Street Launches Institutional Digital Asset Platform for Tokenized Funds

State Street has unveiled a new digital asset platform designed to facilitate institutional adoption of tokenized financial products. The offering supports creation of tokenized money market funds, ETFs, deposits, and stablecoins, bridging traditional finance with blockchain infrastructure.

With $5.4 trillion in assets under management, State Street's move signals growing institutional demand for digital asset solutions. The platform provides custody services and tokenization capabilities, following recent partnerships with Galaxy Asset Management and Ondo Finance for a Solana-based tokenized fund.

The launch coincides with accelerating institutional adoption, as BNY Mellon activated tokenized deposits this month and Franklin Templeton adapted money-market funds for blockchain settlement. A State Street report reveals nearly 60% of institutional investors plan to increase digital asset exposure by 2025.