Former New York City Mayor Eric Adams is facing mounting criticism after the cryptocurrency he promoted, New York Token ($NYC), plummeted within hours of its high-profile launch. Despite this, no regulator has yet concluded that the launch constitutes fraud, and Eric Adams and the token’s operators deny any wrongdoing.
As of the latest transaction, NYC token (New York Dollar) price was $0.1392, up 7.65% in the past 24 hours. Despite the modest rebound, the token is still well below its launch high, with a market capitalization of approximately $10.69 million.
The opening of Times Square and its subsequent rapid collapse
Eric Adams unveiled the NYC Token ($NYC) in Times Square on January 12, 2026, touting the project as a blockchain-powered civic initiative. Built on the Solana blockchain, the token quickly gained speculative momentum and soared to an all-time high of $0.3446.
The NYC token ($NYC) briefly rose after its release. The token immediately plummeted by more than 85%, with a market capitalization of around $110 million, causing widespread alarm among retail investors. C18 Digital, the company behind the token, denied allegations of wrongdoing and blamed the collapse on “liquidity rebalancing by partners.” decentralized exchange.
“Given the overwhelming support and demand for the token at launch, our partners have had to rebalance their liquidity. We are aware of reports flagging transactions and removing liquidity from the pool.
The team has started raising funds for TWAP and added additional funds to the liquidity pool.
We’re in it for the long term!”, NYC Token, posted on X (formerly Twitter)
Eric Adams echoed that explanation during an appearance on Fox Business, arguing that the early volatility was being mischaracterized as fraud.
However, blockchain analytics company Bubblemaps disputed this theory. Bubble Map reported that wallets linked to the deployer withdrew approximately $3.18 million USDC (stablecoin) from the liquidity pool at the exact moment the NYC token ($NYC) reached its highest price. Since then, only about $1.5 million USDC (stable coin) has been returned, leaving about $932,000 missing.
Bubble Maps CEO Nicholas Weimann said the trading pattern was more in line with classic lag pull mechanics rather than routine liquidity management. This finding was independently corroborated by Lookonchain and widely cited by the Washington Post.
The “why” behind political messages and tokens
Beyond the market mechanism, the political framework of the NYC token ($NYC) has come under increased scrutiny. Eric Adams said proceeds from the tokens will be used to combat anti-Semitism and anti-Americanism, fund scholarships for HBCU and underserved New York City students, and teach children the “block change” technology he repeatedly referred to.
Adams framed the token as a corrective measure, sharply contrasting his initiative with the policies of current New York City Mayor Zoran Mamdani. Critics argue that invoking sensitive political and social causes has given the New York Token ($NYC) a veneer of legitimacy that encourages speculative buying.
Cryptocurrency risk experts say warning signs were visible early. Additional data reveals that an insider wallet purchased approximately $750,000 worth of NYC tokens ($NYC) just 10 minutes before publication. The wallet ultimately lost its funds in the crash, but analysts say the timing highlights vulnerabilities in launch control.
Warning against political meme coins
While Eric Adams continues to deny wrongdoing and insists the NYC token ($NYC) can be recovered, blockchain analysts are citing this as a textbook example of crypto market manipulation risk in 2026.
The collapse of the New York Token ($NYC) highlights the growing danger at the intersection of politics, blockchain, and speculative finance, as bubble maps, regulators, and political leaders assess its impact.
Also read: What is a non-fungible token? (NFT) How does it work?
