A spokesperson for former New York City Mayor Eric Adams has refuted accusations that he moved money or profited from the NYC Token, which launched on Monday and plummeted 80% in the first hour of launch.
“To be absolutely clear: Eric Adams did not move investor funds. Eric Adams did not profit from the launch of the NYC Token. No funds were removed from the NYC Token,” Todd Shapiro, a spokesperson for Adams, said in a statement shared to X on Wednesday.
Accusations of a potential rug-pull spread after the NYC Token fell over 80% shortly after launch, with crypto analysts alleging that Adams’ team removed liquidity and scammed investors out of more than $3.4 million.
Shapiro, however, said these allegations are “false and unsupported by evidence.”
“At no point was his involvement intended for personal or financial gain,” said Shapiro, who blamed the sharp token fall on “market volatility.”
NYC Token Team Offers Different Explanation
However, Shapiro’s comments that “no funds were removed from the NYC Token” appears to conflict with a previous statement from the NYC Token X account, stating it “rebalanced the liquidity” in response to the demand the token saw at launch.
The NYC Token team also stated that it added more funds to the NYC Token liquidity pool.
In an interview with FOX Business, Adams explained that proceeds from the NYC Token would provide funding to non-profits to raise awareness about antisemitism and anti-Americanism through education programs.
Proceeds would also be used to support scholarships for NYC students in underserved communities, the former crypto-friendly NYC mayor said.
“Mr. Adams remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.”
NYC Token's Value Remains Low Since Initial Collapse
DEXScreener data shows that the Solana-based token is trading at $0.133, and has been hovering around that mark since it fell from $0.475 shortly after launching.
Over $400 million has been wiped from the NYC Token’s market cap since its early highs.