Former New York City Mayor Eric Adams has vehemently denied accusations surrounding his involvement with the NYC Token, a recently launched speculative cryptocurrency he promoted. Claims that he transferred funds from the wallet associated with the token or profited from it have been labeled as false.
The Solana-based digital asset experienced a rapid surge, briefly reaching a market valuation of nearly $580 million before a swift collapse, leaving many investors with significant losses. Amidst mounting accusations and escalating debate within the cryptocurrency ecosystem, Todd Shapiro, a spokesperson for Adams, issued a statement via X, clarifying that "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
Shortly after the spokesperson's remarks, allegations of fraudulent activity began to emerge. These claims surfaced as the NYC Token experienced a sharp decline of over 80% in the initial hours of trading.
The backlash intensified when on-chain analysts identified unusual liquidity changes within the token's smart contract. Critics have characterized these actions as a "rug pull," a maneuver that leads to a sudden and drastic collapse in the token's price.
In response to these developments, several cryptocurrency analysts had strongly suggested that Adams' team might have withdrawn funds, resulting in total losses exceeding $3.4 million for investors.
Despite these assumptions, Shapiro maintained that the allegations lacked credibility due to a dearth of evidence. He subsequently released a statement asserting, "At no time was his involvement meant for personal or financial gain," and attributed the token's substantial decline primarily to market volatility.
Criticism of Adams' team continued to grow, but Shapiro remained firm in his assertion that no funds had been withdrawn from the NYC Token. However, reports indicated that his statement appeared to diverge from an earlier message posted on the NYC Token's X account.
According to this X post, the individual managing the token's account claimed that liquidity provisions had been modified in response to overwhelming initial demand. Furthermore, the post stated that additional funds were injected into the NYC Token's liquidity pool.
During an interview with FOX Business, Adams outlined the intended use of funds generated from the NYC Token. He stated that the plan was to allocate these funds to non-profit organizations dedicated to initiating efforts to enhance public understanding of antisemitism and anti-Americanism through educational programs.
Shapiro Reaffirms Adams Did Not Transfer Funds from the NYC Token
The former mayor, who has positioned himself as a proponent of cryptocurrency, stated that in addition to supporting non-profits, the funds would also be used to establish a scholarship program for students from marginalized communities in New York.
Following Adams' remarks, Shapiro confirmed that the controversial launch of the NYC Token had not compromised 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," Shapiro stated.
Data from DEXScreener indicates that the current price of the Solana-based token is approximately $0.133. This price has remained relatively stable since its decline from $0.475 shortly after its introduction.
Since reaching its initial peak, reports suggest that the total losses incurred from the NYC Token's market capitalization have amounted to over $400 million.