Eric Adams Denies Profiting as NYC Token Crashes 80% After Launch

Quick Breakdown

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  Eric Adams’ spokesperson denies any profit or fund movement linked to the NYC Token.
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  Liquidity explanations from Adams’ camp and the token team appear to conflict.
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  The token has stabilized after an 80% crash, with over $400 million erased from its market cap.

A spokesperson for former New York City Mayor Eric Adams has pushed back against claims that he or his team benefited from the controversial NYC Token, which plunged more than 80% within an hour of its debut on Monday.

Todd Shapiro, speaking on Adams’ behalf, stated that the former mayor neither moved investor funds nor made any personal profit from the Solana-based token, dismissing accusations of a rug pull as unfounded.

“To be absolutely clear: Eric Adams did not move investor funds, did not profit from the launch, and no funds were removed from the NYC Token,” Shapiro said in a statement posted to X on Wednesday.

The clarification followed mounting criticism from crypto analysts who alleged that liquidity was pulled shortly after launch, resulting in investor losses estimated at over $3.4 million.

Conflicting Claims Over Liquidity Changes

While Shapiro insists no funds were removed, his statement appears to contradict earlier comments from the NYC Token’s official X account.

The token’s team previously said it had “rebalanced liquidity” in response to strong demand at launch and claimed additional funds were added to the liquidity pool, a move that raised questions after the sharp price collapse.

Shapiro described the token’s dramatic drop as a result of “market volatility” and said allegations of wrongdoing lack evidence, adding that Adams’ involvement was never intended for personal or financial gain.

Token’s Price Stagnates After a Sharp Drop

Despite the backlash, Adams has maintained that the token was designed to support social causes. In an interview with FOX Business, he said proceeds would fund nonprofits focused on combating antisemitism and anti-Americanism, as well as provide scholarships for students in underserved New York City communities.

Shapiro said the criticism surrounding the launch has not changed Adams’ stance on leveraging emerging technologies for the public good.

Market data from DEXScreener shows the NYC Token is currently trading around $0.133, largely unchanged since its post-launch collapse from a peak of $0.475.

More than $400 million has been wiped off the token’s market capitalization since its early highs.