Former New York City mayor Eric Adams yesterday, January 12, announced the launch of the $NYC Token on the Solana blockchain. Adams framed the token as a response to what he described as “the rapid spread of antisemitism and anti-American sentiment in the United States and in New York City.”
Despite the absence of any formal affiliation with the city government or official New York City institutions, the token gained immediate attention across crypto social media. Within minutes, $NYC experienced an explosive surge in market capitalization, followed by a sharp, sudden collapse that erased much of its initial gains.
Trading activity escalated rapidly after the token became available. Onchain data shows that $NYC surged to a peak market capitalization of approximately $500 million to $600 million shortly after launch.
The rally, however, proved short-lived. The token fell sharply within minutes, dropping to roughly $120 million in market cap and later declining even further as liquidity continued to exit the market. At the time of writing, the token is currently trading below $40 million market cap.
Was This a Rug Pull?
Blockchain analytics revealed several irregular patterns shortly after the token went live. Liquidity was seeded and withdrawn in rapid succession, creating instability in the trading pools. Multiple wallets acquired large quantities of $NYC early, then moved funds in and out of liquidity pools at a pace that suggested coordination rather than organic trading behavior.
Blockchain analytics platform Bubblemaps flagged suspicious liquidity provider activity involving deployer-linked wallets. According to Bubblemaps, the deployer wallet cycled $USDC in and out of the one-sided liquidity pools on Meteora and extracted more than $1 million shortly after launch.
The behavior closely resembled activity previously observed during the $LIBRA token launch. Bubblemaps also noted that the token climbed to nearly $600 million in market capitalization before the team removed approximately $2.5 million in $USDC in total from liquidity pools, triggering a roughly 70% price drop.
Analysts highlighted an additional concern related to the token’s launch mechanics. There was an estimated 20-minute window between the moment $NYC became tradable and the public release of its mint address. This timing advantage allowed snipers and insiders to accumulate positions before broader market participation, amplifying price volatility once public trading began.
$NYC Team Pull a Do Kwon In Response to Allegations
In the aftermath of the allegations, the @buynyctoken account issued a public response reminiscent of the “Deploying more capital - steady lads” tweet from Mr. Do Kwon of blessed Terra memory. The team stated that overwhelming demand required partners to rebalance liquidity.
The statement acknowledged reports of liquidity removal and claimed that the funds were used for time-weighted average price strategies and later returned to the pool. The team emphasized its long-term commitment but did not provide detailed documentation to support these claims.
Comparisons to Past Celebrity Token Launches
Several commentators compared the $NYC launch to earlier celebrity-driven memecoin events. One observer remarked that the situation "reeks of Hayden Davis and co," referencing figures linked to controversial token launches.
Past examples include the $LIBRA and $MELANIA tokens, where insiders allegedly profited while retail traders absorbed losses. Similar scrutiny followed Kanye West’s $YZY token launch on Solana, which also experienced intense speculation, rapid price movement, and unanswered questions about accountability.
These precedents have conditioned the market to approach politically or celebrity-associated tokens with caution. Analysts note recurring patterns such as opaque launches, early insider access, and aggressive liquidity maneuvers.
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