Eric Adams denies profiting as NYC Token crashes 80% after launch

Former New York City Mayor Eric Adams has dismissed the accusations raised against his involvement with the NYC Token, a newly released speculative cryptocurrency that he promoted, as false. Some had speculated that he transferred funds from the wallet associated with that token, while others claimed that he profited from it.

The Solana-based digital asset briefly surged to a market valuation of nearly $580 million but collapsed swiftly, leaving many investors deeply in the red. As accusations surrounding Adams continued to mount and the ongoing debate in the ecosystem heated up, Todd Shapiro, a spokesperson for Adams, shared an X post stating that, “To be completely clear: Eric Adams did not transfer any investor funds. He did not benefit from the launch of the NYC Token. No money was taken from the NYC Token.”

Fraud claims erupt as NYC token crashes

Just after the spokesperson shared his remarks, allegations of fraudulent activity began to surface. This occurred at a time when the NYC Token dropped to more than 80% in the early hours of trading. 

The backlash intensified after on-chain analysts flagged unusual liquidity changes in the token’s smart contract, which critics liken to a “rug pull,” causing the token’s price to collapse.

Responding to these allegations, several crypto analysts had placed strong bets that Adams’ team could have withdrawn funds, resulting in a total loss of more than $3.4 million for investors.

Nonetheless, even with these assumptions raised, Shapiro still insisted that these allegations lacked credibility due to an absence of evidence. Afterwards, he released a statement stating that, “At no time was his involvement meant for personal or financial gain,” pointing out market volatility as the primary cause of the token’s substantial decline.

Still, criticism of Adams’ team continued to intensify, but Shapiro maintained his stance that no funds had been withdrawn from the NYC Token. However, sources reported that his statement appeared to differ from an earlier message displayed on the NYC Token’s X post. 

According to this X post, the individual managing the token’s X account claimed that it had modified liquidity provisions in response to overwhelming initial demand. Additionally, more funds were added to the liquidity pool of the NYC Token, according to a post on the X account. 

Meanwhile, during an interview with FOX Business, Adams discussed what they intend to do with the funds from the NYC Token. According to him, they plan to allocate these funds to non-profits that seek to initiate efforts to ensure all individuals have a better understanding of antisemitism and anti-Americanism via educational programs. 

Shapiro still insists Adams did not transfer funds from the NYC Token

The former mayor, who presented himself as a strong advocate for crypto, claimed that apart from funding these non-profits, the funds would also establish a scholarship program to support students in marginalized communities in New York. 

Following his remarks, Shapiro affirmed that the controversial introduction of the NYC Token has not interfered with Adams’ strong commitment to these initiatives. 

“Mr Adams is still dedicated to responsible innovation and using new technologies to build trust, education, and shared civic values,” he said.

In the meantime, data from DEXScreener noted that the current price of the Solana-based token is approximately $0.133. Interestingly, the token has maintained this price unchanged since it declined from $0.475 just after its introduction. 

Since attaining this early peak, reports alleged that the total losses incurred amount to more than $400 million from the NYC Token’s market capitalization.

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