Eric Adams’ NYC Token Faces Scrutiny After Early Liquidity Withdrawals and Centralization Concerns

Former New York City Mayor Eric Adams unveiled a new memecoin project on Monday, drawing swift attention from both local media and crypto analysts. The token, called NYC Token, was introduced during a press conference in Times Square shortly after Adams officially left office on Jan. 1. Within hours, on-chain data began raising concerns about the project’s liquidity structure and risk profile.

Early Liquidity Pull Raises Questions Around Token Structure

According to local reports, Adams introduced NYC Token alongside a dedicated website, presenting it as a blockchain-based initiative connected to civic causes. Within hours of the launch, however, blockchain observers flagged unusual activity in the token’s liquidity pool. The crypto monitoring account Rune Crypto reported that approximately $3.4 million had been withdrawn from liquidity shortly after trading began.

Independent analysts soon echoed those concerns. StarPlatinum, a crypto commentator, warned that the token appeared highly centralized and carried elevated risk for traders. On-chain analytics platform Bubblemaps identified additional irregularities involving wallets linked to the token’s creator.

Bubblemaps data showed that a deployer-linked wallet labeled 9Ty4M withdrew roughly $2.5 million in USDC near the token’s price peak. After the token’s value fell by more than 60%, about $1.5 million in liquidity was later reintroduced. Bubblemaps compared this sequence to the LIBRA token’s controversial launch, when similar liquidity movements raised alarms among market participants.

Based on publicly available on-chain data, several patterns stood out:

• Liquidity was withdrawn within hours of the token’s public debut.
• A wallet tied to the deployer controlled significant capital flows.
• Token ownership appeared heavily concentrated.
• The price declined sharply following liquidity removal.
• Liquidity was partially restored only after the price drop.

NYC Token Targets Civic Causes While Centralizing Majority of Supply

Project materials state that NYC Token operates on the Solana blockchain and has a total supply of 1 billion tokens. Seventy percent of that supply is allocated to the “NYC Token Reserve” and excluded from circulation. The project has not disclosed a detailed governance or oversight framework for this reserve.

At the press conference, Adams said proceeds from the token would fund initiatives addressing anti-Americanism, antisemitism, and related issues he has previously highlighted. He indicated that the funds would be distributed through an unnamed nonprofit organization. In an interview with the New York Post, Adams likened the project to enterprise blockchain applications, citing Walmart as an example of operational transparency.

As Walmart is using blockchains to deal with their food chain and transparency, we know cities can run better, and by using this New York City token, we’re going to continue to invest in making our city a safer city.

Eric Adams

Zohran Mamdani succeeded Adams as mayor on Jan. 1. During his tenure, Adams publicly championed cryptocurrency and technology, at one point pledging to make New York a global crypto hub. Although many proposals did not materialize, he oversaw the city’s first crypto summit, established the Office of Digital Assets and Blockchain, and took his first three mayoral paychecks in bitcoin and ether.

Adams stated that he would not receive a salary from NYC Token and declined to identify any co-founders at the event. Separately, federal corruption charges against him were dismissed last year following a request from the Justice Department.