Former New York City mayor Eric Adams unveiled a new memecoin project called NYC Token during a press conference in Times Square shortly after leaving office on 1 January.
The token launch quickly attracted attention from local media and crypto analysts as on-chain data raised concerns within hours of trading activity.
Observers flagged the project’s liquidity structure after reports showed significant withdrawals shortly after the token became tradable.
Crypto monitoring account Rune Crypto reported that around $3.4 million was removed from the liquidity pool soon after launch.
Analysts said the early liquidity movement raised red flags about the token’s risk profile and overall design.
Crypto commentator StarPlatinum warned that NYC Token appeared highly centralised, increasing potential risks for traders.
On-chain analytics platform Bubblemaps identified wallets linked to the token’s deployer showing unusual transaction patterns.
Bubblemaps data indicated that a deployer-linked wallet withdrew roughly $2.5 million in USDC near the token’s price peak.
The token’s value later dropped by more than 60 percent following the liquidity withdrawal, according to on-chain figures.
Around $1.5 million in liquidity was reintroduced after the sharp decline, prompting further scrutiny from analysts.
Bubblemaps compared the sequence of events to the controversial launch of the LIBRA token, which faced similar criticism.
Project materials state that NYC Token operates on the Solana (CRYPTO:SOL) blockchain with a fixed supply of one billion tokens.
Seventy percent of the total supply is allocated to an NYC Token Reserve and is not currently in circulation.
The project has not provided detailed information on governance structures or oversight of the reserve funds.
Adams said the token is intended to support civic causes, including initiatives addressing antisemitism and anti-Americanism.
He stated that proceeds would be distributed through a nonprofit organisation, though no specific entity was named.
As Walmart is using blockchains to deal with their food chain and transparency, we know cities can run better, and by using this New York City token, we’re going to continue to invest in making our city a safer city.
Eric Adams said.
Adams added that he would not receive a salary from NYC Token and declined to identify any co-founders at the event.
Zohran Mamdani succeeded Adams as mayor on 1 January following the end of Adams’ term.
During his tenure, Adams publicly promoted cryptocurrency adoption and positioned New York as a potential global crypto hub.
He previously accepted his first three mayoral paycheques in bitcoin (CRYPTO:BTC) and ether (CRYPTO:ETH) as a symbolic gesture.
Federal corruption charges against Adams were dismissed last year after a request from the US Justice Department.
At the time of reporting, Bitcoin price was $93,331.10.