Eric Adams’ $NYC Memecoin Implodes in Suspected Rug Pull

The launch drew immediate attention. Adams wore branded gear, appeared in Times Square, and gave interviews about the project. Trading volume surged past $30 million within hours. At one point, the token reached a price of $0.58 and a market cap of nearly $600 million.

Hype Turned to Panic in Minutes

The token was marketed as a community-driven project tied to New York City themes. But early signs raised suspicion. The promotion account was geolocated to Tel Aviv. Critics questioned whether Adams truly controlled the project.

Shortly after the token went live, trading activity turned chaotic. A wallet linked to the creator added 80 million tokens to a decentralized exchange. That same wallet quickly removed more than $2.4 million worth of USDC from the liquidity pool. Although $1.5 million was later re-added, roughly $930,000 remained missing.

Prices plunged within minutes. $NYC dropped from $0.58 to around $0.11. This crash wiped out over $500 million in market cap. On-chain data from Bubblemaps labeled the movement as suspicious.

Social Media Reacts, Accusations Fly

Crypto users quickly called it a rug pull. Many accused Adams of using his political brand to create hype. Some compared the situation to previous celebrity-backed token failures.

Adams has not made a public statement yet. The project’s team claimed they removed and replaced funds to handle overwhelming demand. However, critics were not convinced.

So far, no government agency has launched a formal investigation. But many in the community believe regulators like the DOJ could take interest.

The Token’s Purpose Remains Unclear

During the launch event, Adams claimed the project would fund scholarships and social causes. He said he wouldn’t take a salary. He also mentioned having two co-founders but gave few details.

The official website lacked clarity. Critics argued that the vague mission, paired with fast-moving liquidity changes, made the project risky from the start.

One More Warning About Political Memecoins

The $NYC collapse adds to growing concerns about politician-backed crypto projects. It reminds investors how quickly hype can turn into loss. Without transparency, even well-known figures can become central to risky schemes.

This event is now part of a larger conversation. Investors are calling for more scrutiny. Many want guardrails to prevent similar projects from misleading the public in the future.