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Eric Adams, who stepped down as mayor of New York City two weeks ago, has made a notable entry into the world of cryptocurrencies with the launch of his own token, New York City.
Less than 24 hours later, more than half of the 4,300 traders who bought the token were left with losses. The project quickly took on the characteristics of meme currency, with analysts describing the incident as a classic carpet scenario.
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The unexpected return of political memes
Most people thought it was 2025 The end of the meme currency wave.
After a series Notable launches by current presidents Ending with losses of hundreds of thousands of dollars, the narrative lost overwhelming support from individual traders.
However, Eric Adams seems to have revived this trend before dropping it for good. On Monday, the former mayor of New York made the announcement on social media About the launch of the New York code.
Adams explained that it was built “to combat the rapid spread of anti-Semitism and anti-Americanism.”
However, the offer led to… Big losses for most traders. New York quickly jumped to a market value of $600 million before collapsing below $100,000.
After seeing these situations repeatedly in the past, the cryptocurrency community quickly started looking for insiders.
The data on the chain feeds the insider’s allegations
A follow-up analysis by blockchain analytics platform Bubblemaps revealed that a wallet linked to the post token withdrew about $2.5 million USDC from the liquidity pool that supports trading, as the New York price rose.
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When the token fell by 60%, the creators of New York added tokens worth $1.5 million.
“The New York Wallet returned part of the money to the liquidity pool and created two large purchase orders (one for the value of $200,000 and one of $300,000) to make small purchases every 60 seconds. In addition to being dubious, these movements were not communicated in advance and raised a lot of distrust,” said Fernando Molinayst to Blockworks in Block.
The maneuver also did little to recover the price. What happened to the other $1 million remains unclear.
Meanwhile, the investors left To heal his wounds.
On Wednesday, Bubblemaps revealed that 60% of the 4,300 traders who invested in the token lost money. More than half of them lost less than $1,000, while others suffered larger losses. Fifteen of them lost more than $100,000.
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When analyzing the launch, Molina compared it with famous carpet recalls, Like the LIBRA code That was launched by Argentine President Javier Milley last February.
“Technically, there were many similarities: the method of generating the liquidity pool (the market where New York or Libra could be traded) had characteristics that are not common in these launches (unilateral liquidity pools).” “There is no clear evidence that it was the same team, but the similarities are very clear.”
However, Adams was soon accused of being an insider.
Adams denies the allegations amid scrutiny
On Wednesday, Todd Shapiro, a spokesman for Adams, released a statement in response to the rug-pulling accusations.
“Recent reports that Eric Adams moved funds from the New York token are false and unsupported by any evidence.” “At no point was his involvement intended for personal or financial gain.”
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The statement added that, like many newly launched tokens, the project experienced significant initial volatility.
However, this explanation did little to ease the scrutiny of Adams, who had a unique role in the larger cryptocurrency scene.
As mayor of New York City, Adams built a reputation as an outspoken supporter of cryptocurrencies, often supporting Bitcoin and blockchain technology. Even before taking office, he announced plans to acquire… His first three mayor salaries are in Bitcoin.
However, his reign sparked controversy. It was marked by allegations of corruption and historically low approval, leaving Adams with a difficult path for re-election.
Echoing a strategy followed by US President Donald Trump, who lured lobbyists into digital currencies before his re-election campaign, Adams continued. Presenting himself as a pro-crypto politician. This approach ultimately failed to secure a second term.
However, the New York token launch was the first time Adams personally launched a digital cryptocurrency project. So far, things are starting to get rocky.
