Eric Adams Allegedly Pulls Liquidity from NYC Token, Sparking Panic

Eric Adams' NYC Token Faces Rug Pull Allegations

The NYC Token, launched by former NYC mayor Eric Adams, faced accusations of a "rug pull" after liquidity was pulled at its price peak.
On-chain data indicates 3.18 million USDC was removed from the liquidity pool, causing a rapid price drop and panic selling among traders.
A trader identified as Dr6s2o reportedly lost around $473,500 in under 20 minutes due to the price crash.
Bubblemaps reported a connected wallet withdrew about $2.5 million in USDC during the peak and later returned $1.5 million post-crash, raising concerns over liquidity manipulation.
NYC Token is currently trading at $0.1306, up 1.22% in the last 24 hours, signaling slight recovery amidst ongoing scrutiny.

Project Launch Details and Industry Response

The NYC Token was launched as a civic initiative to support education and combat antisemitism; however, it lacked a whitepaper and partner details on its website.
The token briefly reached a market value near $580 million before losing over 80%, now stabilizing above $110 million.
This incident follows similar controversies with political meme coins like TRUMP and MELANIA, prompting calls for regulatory investigations into potential conflicts of interest and rug-pull risks.
Senator Elizabeth Warren has urged US regulators to probe these political meme coins, citing security risks for investors.
The allegations against Eric Adams will likely lead to further scrutiny from both traders and regulatory bodies.