Eric Adams' spokesperson denies any profit from the NYC Token after its price crashed over 80% shortly after launch.
A spokesperson for former New York City Mayor Eric Adams has denied that the mayor gained any profits from the recently launched NYC Token. Todd Shapiro stated emphatically that Adams did not handle investor funds or profit from the token's release.
“To be absolutely clear: Eric Adams did not move investor funds. He also did not profit from the release of the NYC Token,” Shapiro said.
The NYC Token, which is based on the Solana blockchain, debuted on January 13 but saw an alarming price drop of over 80% within half an hour of its launch, from $0.47 to roughly $0.10. This significant decline caused the market cap to plummet from $500 million to approximately $40 million.
Market analysts noted odd trading patterns, including a transfer of 80 million tokens to a wallet that provided liquidity on the decentralized exchange Meteora. At the peak of the token’s value, the same wallet withdrew $2.5 million in USDC, but returned only $1.5 million after the drop in value.
Researcher Rune indicated that investors could have collectively lost about $3.4 million related to the token. Shapiro attributed the steep price drop to market volatility, a claim that contradicted earlier statements from the NYC Token team which referenced necessary liquidity adjustments due to high demand at launch.
Despite the spokesperson's reassurances, skepticism remains among community members. Critics have drawn parallels between this token's launch and previous controversial projects, such as Facebook's LIBRA, which was promoted by Argentine President Javier Milei.
The official website of the NYC Token lacks detailed information, merely calling it a "public cryptocurrency of New York" that reflects the city's "real estate energy." In a previous interview, Adams expressed his intention for the token to fight anti-Americanism and anti-Semitism, assuring followers that all proceeds would be directed to nonprofit organizations. However, the token is not linked to any governmental body, and the identities behind its launch remain undisclosed.
Adams has a history of cryptocurrency advocacy, having previously announced his intention to accept his first three salaries in Bitcoin and his ambition to position New York as a global crypto hub.
