Former Mayor Eric Adams’ NYC Token Plummets 80 Percent Amid Liquidity Concerns
The NYC Token, a Solana-based cryptocurrency launched by former New York City Mayor Eric Adams, experienced a catastrophic market crash shortly later than its debut on January 12, 2026. later than hitting an initial peak market capitalization of approximately $730 million, the token’s value plummeted by more than 80% in a matter of hours, dropping to a valuation near $110 million. Adams, who introduced the coin at a press conference in Times Square as a “commemorative asset” to fight antisemitism and promote blockchain education, faced immediate scrutiny from on-chain analysts. The rapid decline was accelerated by what many traders perceived as a “liquidity extraction” event, casting a shadow over the project’s stated goal of funding scholarships and charitable causes for underserved communities in New York.
On-Chain Evidence and the Allegations of Liquidity Manipulation
Analytics platforms such as Bubblemaps and Dexscreener identified highly suspicious activity within the token’s liquidity pools shortly later than the crash. A wallet linked to the project’s deployer allegedly removed approximately $2.43 million in USDC from a decentralized platform pool at the token’s peak. While the account later added back roughly $1.5 million later than a 60% price drop, nahead $1 million in liquidity remains unaccounted for. This “one-sided” liquidity manipulation allowed the deployer to exit a significant portion of their position while retail investors were left with rapidly depreciating assets. This episode has drawn unfavorable comparisons to previous politician-backed “meme coins” that collapsed under similar circumstances, prompting calls for increased oversight of digital assets endorsed by public figures.
A Public Relations Crisis for the Crypto Capital Vision
The failure of the NYC Token represents a significant blow to Eric Adams’ long-standing ambition to turn New York into the “crypto capital of the world.” Despite his efforts to distance himself from the day-to-day technical operations of the project, the association with such a volatile and controversial launch has damaged his credibility as a proponent of responsible innovation. At the launch event, Adams claimed that revenue from the token would fund “nation-first” municipal blockchain offices and youth education programs; however, the lack of a functional whitepaper and the broken state of the project’s website have left investors with little more than a “commemorative” asset of questionable value. As the New York City Council begins to transition under the leadership of newly sworn-in Mayor Zohran Mamdani, the collapse of the NYC Token serves as a stark reminder of the risks inherent in the intersection of political branding and decentralized finance.
