Author: Zen, PANews
"We're about to change the game; this thing is about to become a hit!"
On January 12, Eastern Time, Eric Adams, who had stepped down as mayor of New York City less than two weeks prior, stood in Times Square, New York City, and excitedly launched a cryptocurrency called "NYC Token" to the public in front of five or six reporters.
This digital token, touted as a tool to "combat the spread of anti-Semitism and anti-Americanism," saw its market capitalization soar to nearly $600 million within minutes of its launch. However, the euphoria was short-lived; NYC Token quickly plummeted by over 75%, shrinking its market value to less than $100 million, sparking public outcry.
A series of unusual on-chain fund movements were exposed, quickly turning Adams' first campaign rally after leaving government service into a farce riddled with doubts.
Soaring and plummeting: The whole story of the "NYC Token" alleged "Rug Pull"
December 2025 was a particularly comfortable month for Eric Adams, his final month as mayor of New York City. He could use his position to travel freely, fulfilling his childhood dream of traveling the world. Accused of suffering from "mayor's retirement syndrome," Adams visited Albania, Israel, and Uzbekistan, and flew to New Orleans to accept an award from the "Anti-Anti-Semitism Movement."
Critics accuse Adams of shirking government responsibility and abusing publicly funded travel opportunities to prepare for his next job. Adams himself does not deny considering overseas job opportunities, vaguely telling reporters, "Many people want me to work in other countries."
But clearly, Adams, who prides himself on having a "Brooklyn vibe," can't shake off his New York connection. Now out of office, after a trip to Congo and Dubai, he returned to Times Square to ambitiously announce his first major undertaking as an ordinary citizen —NYC Token, a community currency touted as the "digital heartbeat" of New York City, the city that never sleeps.
Adams stated that the proceeds will be used in part to "curb anti-Semitic and anti-American propaganda," provide crypto education for New York youth, and support scholarship programs. "Walmart is using blockchain technology to manage its food supply chain and increase transparency, and we know cities can function better. Through NYC Token, we will continue to invest in making our city a safer city."
Adams was vague about the project details and its implementation. Based on his statements and official project information, the ambitious plan can be summarized as follows: profits from the "NYC Token" will go to an unnamed non-profit organization to fund groups combating anti-Semitism. Adams also stated that he is "not currently receiving a salary" and that any such decisions made in the future will be announced.
After his cryptocurrency debut, Adams immediately flew to Dallas. Upon disembarking, he got into an argument with a female passenger who booed him. Facing the foul-mouthed woman, the 65-year-old Adams responded forcefully: "Get lost, you'll see the Brooklyn spirit in me!" Videos of this incident have garnered widespread attention and discussion on social media.
The story of the NYC Token, launched by Adams, is even more fascinating in the cryptocurrency world.
Within minutes of its launch, the NYC Token's valuation soared to nearly $600 million, before plummeting, losing over 80% of its value that night. This anomaly alerted on-chain detectives, with crypto analytics firm Bubblemaps quickly releasing an investigation stating that the crash was caused by an account associated with the token's creation withdrawing $2.5 million worth of tokens. This same account then added approximately $1.5 million worth of USDC back in after the price dropped by 60%.
According to Nicolas Vaiman, founder of Bubblemaps, as of January 15th, the total number of accounts investing in NYC Token slightly exceeded 4,000, with approximately 80% of these accounts purchasing within 20 minutes of the token officially opening for sale. Vaiman stated that this window of opportunity provided an advantage for insiders involved in the token offering and other traders closely monitoring new tokens. Most accounts investing in the cryptocurrency suffered losses: 15 traders lost at least $100,000, while 10 traders netted $100,000.
Beosin's analysis indicates that after withdrawing $2.37 million in liquidity, the issuer continued to buy back tokens, but only returned approximately $1 million, leaving $1.33 million still held in the issuer's address. Following this, the token price remained stagnant. According to CMC data, as of January 16th, the NYC Token price was approximately $0.133, with a circulating market capitalization of approximately $10.6 million and a FDV of approximately $133 million.
Who is the mastermind behind this?
In response to a barrage of criticism, on January 14, Adams, through his former campaign spokesperson Todd Shapiro, issued several statements clarifying that he had not profited from the token, nor had he transferred investor funds, and called other reports false and unsubstantiated. Spokesperson Shapiro stated, "Like many newly launched digital assets, the NYC Token has experienced market volatility. Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation."
Denying wrongdoing and attacking the media, Adams has once again resorted to his two trump cards from his mayoral term. Despite claiming to maintain transparency, Adams has so far refused to disclose his partners in issuing the NYC Token. He only told the media that his cryptocurrency mentor, Tether co-founder Brock Pierce, was not involved in the project. Pierce stated that he only learned of this after the project started, adding, "If they had consulted me, I would have assembled a more professional and knowledgeable team."
According to the Associated Press, two people close to the project confirmed that Frank Carone, Adams' former chief advisor and a former Brooklyn Democratic lawyer, was deeply involved in the token issuance. Adams spokesman Shapiro also confirmed to the Associated Press that Yosef Sefi Zvieli, a former client of Carone and a real estate investor with ties to several Israeli hotels, was also one of the project's creators.
However, neither Carone nor Zvili, these two key figures, had previously demonstrated direct experience in cryptocurrencies, and their specific roles in the token issuance are not yet fully clear. What is known so far is that part of Zvili's work involved contacting influential figures prior to the token issuance.
Adams denied that the creator of NYC Token had withdrawn any funds, explaining that the withdrawals were the result of adjustments made by designated market makers responsible for placing orders for the new tokens to ensure traders could buy without causing significant price volatility. NYC Token's market makers include the well-known digital asset brokerage FalconX, which has declined to comment formally.
Speculation about this farce can be divided into three main viewpoints.
First, NYC Token is also a typical "Rug Pull," where insiders first hype up a certain asset, drive up the price, and then quickly sell it off. Such operations are commonplace in the industry, only the timing of the "cash-out" differs. Second, some people believe that Adams and his inexperienced team may have been deceived by the more shrewd actual planners behind the scenes, and Adams, who was in the foreground, was just a victim who was also being used.
Another speculation is that NYC Token was simply a conduit for Adams to receive bribes. Those who hold this view believe it's hard to believe anyone would be foolish enough not to recognize such an obvious scam. However, under related tweets from Adams' X account, one can still see what appear to be investors requesting refunds and compensation for their losses.
The controversial "Bitcoin Mayor"
Adams' passion for cryptocurrency is long-standing, even serving as one of the hallmarks of his public image. After winning the New York City mayoral election in 2021, he immediately announced his intention to make New York the "Cryptocurrency Capital of the World" upon taking office, and fulfilled his promise to receive his first three months' mayoral salary in Bitcoin. This move earned him the nickname "Bitcoin Mayor."
During his tenure, he frequently attended various blockchain events and mingled with crypto celebrities, including Brock Pierce mentioned above. Adams portrayed himself as a staunch supporter of crypto innovation, claiming he wanted to keep New York up-to-date with the times. However, beneath the veneer of financial innovation, Adams has long been criticized for the criminal records of his inner circle members and his frequent involvement in New York City's nightlife. In terms of governing style, he continued a showy approach heavily influenced by personality cult, neglecting many practical problems in municipal management.
Since 2023, a series of scandals concerning Adams' campaign fundraising and government personnel have gradually surfaced, tarnishing the reputation of this once-promising mayor. In November of that year, the FBI raided Adams' campaign team, seizing the residence of his chief fundraiser and confiscating numerous cell phones, computers, and other evidence. The investigation pointed to a corruption case involving the Turkish government providing illegal political donations to Adams' campaign through intermediaries.
Then, even more explosive news followed. In September 2024, a federal grand jury in New York formally indicted then-mayor Adams, charging him with multiple counts including accepting bribes from overseas, conspiracy to commit fraud, and obtaining illegal campaign funds from foreign entities. Adams thus became the first mayor in New York history to be indicted by the federal government while still in office. Following the exposure of the charges, he immediately pleaded not guilty in court and publicly declared his innocence.
This shocking indictment caused Adams' political career to take a sharp downturn. The question of whether Adams should resign became a hot topic of debate in New York politics and media. The New York Times published an editorial stating that "Eric Adams should resign," and several prominent figures from both the Democratic and Republican parties also called for his resignation. A poll in the fall of 2024 showed that a staggering 70% of New York voters wanted the mayor to resign.
However, Adams refused to relinquish power, insisting on remaining in office and actively defending himself. On the one hand, he hired a team of prominent lawyers to deal with the lawsuits, and on the other hand, he claimed that he was being "politically persecuted" by the Biden administration because he had criticized the White House for its inadequate support to the city government on the New York immigration crisis.
A dramatic turn of events occurred in early 2025. At that time, Trump had returned to the White House, and the new head of the U.S. Department of Justice was instructed to grant leniency in the Adams case. Then, in April, the Department of Justice formally applied to the court to dismiss the charges, and subsequently, four deputy mayors from Adams' administration announced their resignations.
The judge who presided over the case previously warned that the decision was worrying, suggesting that Mayor Adams's freedom "depends on the extent to which he implements the Trump administration's immigration enforcement priorities," making him "more subservient to the demands of the federal government than to his own constituents."
Behind the judicial acquittal lies Adams' rapid political shift in an attempt to protect himself. Starting in late 2024, the Democratic mayor began currying favor with the Trump camp. He not only publicly echoed Trump's hardline stance on immigration but also traveled to Mar-a-Lago in Florida in January 2025 for a private meeting with Trump. Subsequently, he skipped the official Martin Luther King Jr. Day events in New York, instead attending Trump's presidential inauguration in Washington.
It was noted that Adams' policy rhetoric shifted significantly to the right, gradually aligning with the Trump administration, including agreeing to strengthen New York's cooperation with federal immigration enforcement. Reportedly, Trump once indicated he would consider granting Adams a presidential pardon if necessary. However, ultimately, the Justice Department effectively pardoned Adams by dropping the charges.
Although he escaped imprisonment, Adams' political career was severely damaged. In the 2025 New York City mayoral election, embroiled in scandal, he failed to win the Democratic nomination and instead attempted to run as an independent. Later, persuaded by Trump allies, Adams withdrew from the race in September of that year, calling for support for another candidate with Trump ties, former New York Governor Andrew Cuomo. Ultimately, Zohran Mamdani, a rising progressive politician, won the November election, succeeding Adams as the new mayor.
Thus ended Adams's single term in disgrace. Following this, Adams personally got involved in issuing tokens, launching the NYC Token, a crypto project with strong memecoin characteristics.
Whether NYC Token was truly seen by Adams as a tool for a comeback and image reshaping is something only Adams himself knows for sure. Regardless, the dismal development and trajectory of NYC Token not only failed to improve his reputation but also added further stains to his image.
There will always be another Adams; the nights in New York City never sleep, and neither does speculation.
