The rapid plummet of a digital coin promoted by ex-New York City Mayor Eric Adams is drawing outrage from investors and crypto mavens who say the debut of the currency resembles a “rug pull” or “pump-and-dump” scheme.
“NYC Token” fell a jaw-dropping 82% in value less than an hour after opening Monday afternoon — and as someone withdrew $2.5 million in liquidity from the asset.
The cryptocurrency reached a market capitalization of around $600 million shortly after its debut on the Solana blockchain, following Adams’ promotion of the coin at a Monday morning press conference in Times Square.
“This thing is about to take off like crazy,” Adams said in a video promo for the currency.
The token — proceeds from which would go to unspecified efforts to fight antisemitism and so-called “anti-Americanism,” the ex-mayor bizarrely said — opened at $0.60 per share.
But its value quickly plummeted to $0.11 as a party took out $2.5 million from the token.
Observers noted that the sudden collapse bore the hallmarks of what is known as a “rug pull” scheme — similar to a “pump-and-dump” — in which unscrupulous entrepreneurs drain the value out of a cryptocurrency shortly after they launch it.
The identity of the party that withdrew the $2.5 million is not yet known. About $1.5 million of those funds were later put back in the NYC Token.
The developers of the coin likely made a cool $1 million off the maneuver, Nicolas Vaiman, the founder of crypto analytics firm Bubblemaps, told Fortune.
A spokesperson for the digital coin told The Post: “After the launch of NYC Token, there was a lot of demand.
“Our market maker made adjustments in an attempt to keep trading running smoothly, and as part of this process, moved liquidity. The team has not sold any tokens and is subject to lockups and transfer restrictions.”
The spokesperson added that nobody from the team behind the digital currency withdrew any money from the account.
Vaiman appeared to be skeptical.
“I truly have no explanation on why they did it,” he was quoted as saying. “Is this as simple as just pure grift? Maybe I’m overoptimistic and I don’t want to believe that’s the case, but maybe this is what it is.”
Meanwhile, a possible trademark dispute is brewing that involves a Bronx-based entrepreneur who accused Adams of hijacking the NYC Token concept.
Edward Cullen claims he pitched the idea for a cryptocurrency branded around New York City to Adams’ team in June and had already trademarked the name “NYC Token” before the former mayor’s public rollout.
Cullen has said Adams and his associates moved forward with the project without his consent and used the branding despite his prior claim.
The entrepreneur has threatened legal action, arguing that the launch trampled his intellectual property rights and misled investors about the origins of the project.
“The blatant nature of what happened left us confused and shocked,” Cullen said in a statement to The Post. “We are going to pursue action, including sending a cease-and-desist within the next two days.”
“We are 100% going to hold [Adams] accountable, and we are going to go through every avenue of accountability available to us,” he added.
Adams and representatives for NYC Token have not publicly addressed the trademark allegations.
The Post has sought comment from Adams.
Some critics say the episode highlights the growing risks of politicians lending their names and credibility to speculative financial ventures, warning that official stature can blur the line between public service and private promotion — and leave everyday investors exposed when hype overtakes fundamentals.
“If a sitting president can attach their name to a speculative financial product, then every governor, mayor, and city councilmember now has the green light to do the same,” said Dean Lyulkin, CEO of Cardiff.
“Once political credibility becomes a marketing asset, the line between public service and private promotion effectively disappears. You cannot argue that this behavior is inappropriate at the local level if it has already been tolerated at the top.”
“In the end, this is a buyer-beware story as old as time,” Lyulkin said.
“A fool and his money are still soon parted — crypto just makes the lesson faster and more visible. Technology has not repealed human nature, it has simply made expensive mistakes easier to scale.”
