Analysts flag NYC token crash as possible rug pull after 80% plunge

Former New York City Mayor Eric Adams’ NYC meme coin plunged more than 80%, pushing its market capitalization below $100 million, Beincrypto reported. Blockchain analysts pointed to unusual liquidity movements that they say trapped traders and fit rug‑pull patterns. Rune Crypto alleged Adams removed $3.4 million from the token’s liquidity pool, and Ash Crypto posted that the coin reached a $500 million market cap before liquidity was withdrawn and the token collapsed.

Nansen research analyst Nicolai Sondergaard outlined four reasons the move resembles a rug pull: no prior announcement of a planned liquidity “rebalance,” a large amount of liquidity removed quickly rather than gradually, withdrawn liquidity not fully returned, and liquidity removed only after the token had hit high levels.

Bubblemaps found about 4,300 traders interacted with the token, with roughly 60% recording losses — 2,300 lost under $1,000, 200 lost $1,000–$10,000, 40 lost $10,000–$100,000, and 15 lost more than $100,000. Adams’ spokesperson Todd Shapiro denied the allegations, saying reports that Adams moved investor funds or profited are false and unsupported and characterizing the price swings as volatility typical of newly launched digital assets; the project team has described the liquidity movements as a rebalancing.

Key Topics

Crypto, Eric Adams, Nyc Token, Nansen, Rune Crypto, Bubblemaps