If you're going to launch a memecoin as a former big-city mayor, maybe don't let it crash 80% in the first half hour. Just a thought.
Former New York City Mayor Eric Adams found himself at the center of a cryptocurrency controversy Monday after his newly launched memecoin experienced what investors are calling a classic rug pull. The NYC Token, which Adams promoted as a way to combat "antisemitism and anti-Americanism" in the country and in New York City, went from hero to zero faster than you can say "blockchain."
The Rise and Fall
The NYC Token launched on the Solana (SOL) blockchain with impressive fanfare, quickly hitting a market valuation of $540 million. Then came the crash. Within roughly 30 minutes, the token had collapsed 80% to just $87 million, according to Dexscreener data.
As of this writing, the memecoin was valued at $128 million, still 75% below its peak. That's not exactly the kind of volatility that inspires confidence in a political cryptocurrency venture.
The Accusations Fly
The dramatic collapse didn't go unnoticed. Several prominent X accounts quickly accused Adams of orchestrating a rug pull, the crypto world's term for when developers drain liquidity from their own project and run off with investor money.
Cryptocurrency analyst Emperor Osmo claimed that Adams removed liquidity from his own token and made over $3 million through the scheme. Rune, another widely followed on-chain analyst, echoed the same allegation.
X users even added a community note to Adams' promotional post for the memecoin, stating: "Former Mayor Eric Adams immediately withdrew his liquidity from the coin, in what is typically called a 'rug pull.'"