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Former New York City Mayor Eric Adams has denied claims that his new digital currency, the NYC Token, was linked to a series of suspicious cash withdrawals that led to massive losses.
Important points:
- Eric Adams denies transferring funds, blames NYC Token losses on early market crash.
- The project accepts partial refunds for the initial period.
- Blockchain data shows massive withdrawals, raising concerns about sudden withdrawals.
in The statement was published on Tuesday On Adams
The statement added that Adams did not touch the marketing budget and did not profit from the brand’s launch, stressing that “no money was taken from the New York City brand.”
A cryptocurrency development group in New York is showing a drop in prices after causing initial volatility
Shapiro described the high volatility of the token’s value as a common feature of early cryptocurrency projects.
“Like many newly launched digital assets, NYC Token experienced market volatility,” he said, describing the disruption as a market-driven event rather than a withdrawal.
This response follows an increase in activity on the blockchain surrounding the NYC token, which dropped significantly shortly after.
The project admitted that it was changing financially, saying that it had to “manage” amid high demand.
In a note on X, the group said that the partners temporarily withdrew funds to use the long-term value, and later added additional funds to the financial group.
These explanations did little to help the opposition. Independent analysts also reported on trades that appeared to be spending money near high prices, which caused concern among traders.
One of the first warnings came from Rune Crypto, which said that about $ 3.4 million in liquidity was removed shortly after the launch, and accused the operation as a rug-pulling operation.
Blockchain data visualization software Bubblemaps also highlighted unusual patterns.
According to his analysis, the wallet connected to the token’s launch left about $2.5 million in USDC near the market, and then added about $1.5 million after the token’s price fell by more than 60%.
Bubblemaps: 60% of cryptocurrency traders in New York lost money after launch
Bubble charts showed how much a trader lost. Out of about 4,300 people, about 60% of them ended the first hours of cryptocurrency trading with losses.
Most losses were less than $1,000, but about 200 traders lost between $1,000 and $10,000. A small group lost tens of thousands, while at least 15 traders lost more than $100,000.
The Adams camp emphasized that NYC Token was launched as a way to support non-profit initiatives and community education, not as speculative investment.
However, this incident has raised concerns about transparency, especially in terms of governance and financial management.
The website of the project states that the token is used on the Solana platform with a total of 1 billion tokens, 70% of which is allocated to the storage space that is not included in the circulation.
Although the group named unnamed partners in its financial statements, it has yet to publish its statements, leaving questions about oversight and accountability unanswered.
A note Eric Adams denies claims of rug pulling related to the New York brand despite heavy losses appeared for the first time Cryptonews Arabic.
