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Former New York City Mayor Eric Adams faced controversy this week with the launch of his cryptocurrency, NYC Token, which he claimed would combat antisemitism and anti-Americanism. On Monday, the coin debuted on the Solana blockchain, quickly reaching a market valuation of nearly $600 million before crashing to just pennies within minutes.
The sudden drop in value led to accusations of a "rug pull," a common crypto scam where developers withdraw large amounts of money after a token's launch. According to The New York Times, an account linked to the coin's launch withdrew about $2.5 million in early proceeds, causing investor panic. Although some funds were returned, the damage was done, and the token's value remained significantly lower than its initial peak.
Adams, who was present in Times Square for the launch, did not comment on the allegations. Instead, an X account associated with the coin stated that the withdrawal was to "rebalance the liquidity" due to high demand. Crypto investor Brock Pierce, a friend of Adams, described the launch as having "gone sideways" and said Adams would need to work to restore his credibility in the crypto community.
In addition to the crypto debacle, Adams was involved in a separate incident in Dallas, where he was caught on video exchanging expletives with a woman after getting off a plane. The woman reportedly booed Adams, leading to a heated exchange where Adams allegedly threatened her.
The NYC Token launch follows a pattern seen with other political memecoins, such as those launched by President Donald Trump and Argentinian President Javier Milei, which also faced allegations of financial misconduct. Despite the controversy, the team behind the NYC Token insisted they are committed to the project's long-term success.
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