More than 60% of traders who bought the NYC token backed by former New York City mayor Eric Adams ended up losing money within days of its launch.
The token briefly surged to a $600M market capitalisation before collapsing, triggering accusations of insider activity and renewed debate around political meme coins.
Blockchain data later showed that over 4,300 wallets interacted with the token, with losses concentrated shortly after peak trading activity.
Political meme coins resurface
The launch came at a time when many market participants believed political meme coins had largely run their course. Several high-profile projects tied to political figures in recent years ended in sharp losses, dampening enthusiasm among retail traders.
Despite this backdrop, Eric Adams announced the NYC token on social media, positioning it as a project intended to counter antisemitism and anti-American sentiment. Trading activity surged almost immediately, pushing the token to a $600M valuation within hours before a rapid collapse reduced its market cap to under $100K.
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On-chain activity raises questions
Blockchain analytics firm Bubblemaps reported that a wallet associated with the token’s deployer withdrew around $2.5M in USDC from the liquidity pool at the price peak. After the token dropped by roughly 60%, about $1.5M in liquidity was later reintroduced.
Analysts noted that the liquidity movements were not communicated in advance and failed to stabilise the token’s price. The destination of the remaining $1M has not been publicly explained, adding to speculation around the launch mechanics.
Trader losses and comparisons to past launches
Subsequent analysis showed that roughly 60% of traders who bought NYC lost money. While more than half of those losses were below $1,000, a smaller group of investors incurred significantly larger losses, with 15 wallets losing more than $100K.
Market observers drew parallels to earlier high-profile token collapses, citing similarities in liquidity structure and trading behaviour. Some analysts pointed to the use of single-sided liquidity pools as an uncommon feature that has appeared in previous controversial launches.
Adams responds to allegations
Following the backlash, a spokesperson for Eric Adams denied claims that he personally profited from the token or removed liquidity for financial gain. The statement said there was no evidence supporting allegations of insider activity.
The controversy adds to scrutiny surrounding Eric Adams, who built a public profile as a vocal supporter of cryptocurrency during his time as mayor, including promoting Bitcoin and blockchain adoption. The NYC token represents his first direct involvement in launching a crypto project, an effort that has so far drawn criticism from traders and analysts alike.
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