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Concerns are growing in the cryptocurrency community regarding the new New York token launched by former New York City Mayor Eric Adams, as data on the chain revealed a sharp withdrawal of liquidity after its launch.
The move has led some members of the community to speculate that the rug may be pulled. However, the team explained that the liquidity movements were part of the rebalancing process.
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What is the New York symbol of former mayor Eric Adams?
According to reports Informative Adams unveiled the “New York icon” during a press event in Times Square on Monday. The former mayor said that the revenue Alternative currency It will be dedicated to efforts to combat anti-Semitism and anti-American sentiment. Adams also announced the launch on X (formerly Twitter).
According to the official website of the project, the symbol of New York was built On the Solana blockchain. The total supply is $1 billion. in Token Generation Efficiency (TGE), The circulating supply is 80 million tokens.
In addition, the project allocated 70% of the total supply to the “New York Token Reserve”, and will be excluded from the planned circulating supply.
“NYCTOKEN ($NYC) is intended to serve as an expression of support and commitment to the principles and spirit embodied by the “$NYC” symbol and associated artwork, and is not intended to be or be the subject of an investment opportunity, investment contract or guarantee of any kind. NYCTOKEN is not affiliated, endorsed, or associated with the City of New York developers,” it reads. the site .
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Analysts raise concerns amid New York token launch
According to GeckoTerminal data, the token saw a sharp rise shortly after its launch, reaching a market capitalization of more than $700 million. The momentum quickly faded, as the price fell sharply and the market capitalization fell below $100 million.
At the time of writing, New York has seen a modest recovery, bringing its market value to about $128.8 million.
It should be noted that analysts on the chain have raised concerns about suspicious activities. Blockchain researcher Rune Crypto warned Community to withdraw $ 3.4 million from the liquidity pool, indicate that It was a possible scam.
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“Eric Adams has now drained more than $3,400,000 of his meme liquidity: now he’s just a doormat, his net worth was only $2,000,000,” he said. Post .
Bubblemaps also highlighted “suspicious LP activity” in New York. The 9Ty4M wallet, linked to the New York token issuance tool, has been created Unilateral liquidity pool on Meteora.
At the peak of the code, the wallet was removed around 2.5% $1 million in USDC. He later added about $1.5 million to the pool after the price dropped about 60%.
The platform suggested that the situation surrounding the token built on Solana reflects The observed problems with symbol LIBRA. This raises questions about transparency and investor protection in politically connected cryptocurrency projects.
“Unfortunately, this is reminiscent of the launch of $LIBRA, where liquidity was heavily manipulated,” I wrote Bubblemaps.
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In addition to liquidity problems, analysts have pointed to extreme centralization. Cryptocurrency analyst Star Platinum warned of the project’s centralized structure and the risks they pose to retail holders.
“Top 5 wallets only: 92% + of supply. If LP is withdrawn → Instant rug. Several fake tokens launched in New York at the same time → Confusion helped the scammers. Even a sale of 10% of a 70% wallet will quickly destroy the chart. This is not a normal distribution. This is not a safe market structure exposed. “It’s stressful analyst
However, the addressed project informed the activity on the chain by attributing liquidity movements to what it described as a rebalancing process.
In the future, the development of the New York token will probably depend on greater clarity around liquidity management. Continuous on-chain monitoring and transparent communication from the project team can help address community concerns as token market activity develops in the coming weeks.
