What's happened
Former NYC mayor Eric Adams launched NYC Token, a cryptocurrency aimed at fighting antisemitism and anti-Americanism. The token surged to nearly $600 million before crashing over 80% within hours, amid accusations of a 'rug pull' and withdrawal of funds. Adams denies wrongdoing as investigations continue.
What's behind the headline?
The NYC Token episode exemplifies the risks inherent in celebrity-backed meme coins, especially when launched with little transparency. The rapid surge to a $600 million valuation followed by an 80% collapse suggests a classic 'rug pull,' where insiders withdraw liquidity to profit at investors' expense. The involvement of Adams' close associates, such as Frank Carone and Yosef Zvieli, raises concerns about potential conflicts of interest and the lack of due diligence. The episode underscores the importance of regulatory oversight in crypto projects, particularly those with political figures involved. Moving forward, this incident will likely fuel skepticism around celebrity endorsements in crypto and prompt calls for stricter scrutiny of such launches. The case also highlights how social media hype can mask underlying vulnerabilities, leading to significant financial losses for unwary investors. The fallout may lead to legal actions and increased investor caution in future crypto ventures linked to public figures.
What the papers say
The coverage from AP News, NY Post, Business Insider UK, and The Guardian presents a consistent narrative of a high-profile crypto failure driven by suspicion of a 'rug pull.' AP News emphasizes Adams' damage control and the involvement of his associates, while the NY Post highlights the swift withdrawal of funds and the potential for legal disputes. Business Insider UK discusses the market movements and the broader implications of celebrity-backed crypto schemes, with skepticism about Adams' denials. The Guardian offers a detailed account of the rapid valuation spike and subsequent collapse, framing it as a cautionary tale about the volatility and risks of meme coins. Despite differing tones, all sources agree that the launch was marred by suspicion of manipulation and lack of transparency, raising questions about accountability and investor protection in the crypto space.
How we got here
Eric Adams, the former mayor of New York City, announced the launch of NYC Token on January 12, promoting it as a community currency to support efforts against antisemitism and anti-American sentiments. The project was promoted during a Times Square event, despite having no official city ties. The token's rapid rise and fall have raised questions about its legitimacy and the involvement of Adams' team, amid reports of suspicious liquidity movements and legal disputes over the branding.
Go deeper
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Eric Leroy Adams (born September 1, 1960) is an American politician and former police officer who served as the 111th mayor of New York City from 2022 to 2025. A member of the Democratic Party, Adams was an officer in the New York City Transit Police...