Eric Adams’ crypto coin faces ‘rug pull’ accusations
Eric Adams launches NYC crypto coin to combat antisemitism
The former mayor announced the coin at a press conference in Times Square on Monday.
NEW YORK - Former New York City Mayor Eric Adams unveiled a new cryptocurrency on Monday, only to face swift accusations from crypto investors that the project could be a "rug pull" after a sudden withdrawal of funds sent the coin’s value tumbling.
In cryptocurrency, a rug pull happens when a project’s creators hype a token and then disappear after taking investors’ money, according to Coinbase.
What we know:
Adams announced the launch of the coin, called NYC Token, in Times Square, promoting it as a way to raise money to fight antisemitism and what he described as "anti-Americanism." In a promotional video, Adams predicted the coin would rapidly gain momentum.
The initial trading activity appeared to back up his optimism.
$1M missing
According to The New York Times, NYC Token surged within minutes of its debut, briefly reaching a market capitalization of nearly $600 million.
The surge was short-lived. Shortly after trading began, an account tied to the coin’s launch withdrew roughly $2.5 million in early proceeds without notice, unnerving investors and triggering a sharp decline in the coin’s value, the Times reported.
‘Rug pull’ accusations
Eric Adams, mayor of New York, during a Bloomberg Television interview at Gracie Mansion in New York, US, on Tuesday, Aug. 26, 2025. Adams said he has no plans to drop out of November's election after his struggling campaign was rocked last week by m
By Tuesday morning, about $1.5 million of the funds had been returned. Still, Adams was facing accusations from crypto enthusiasts that the project resembled a "rug pull," a term used to describe a scheme in which a coin is heavily promoted before insiders quickly siphon off profits, leaving investors with losses.
People connected to the project denied that any money had been stolen. An account associated with NYC Token said the withdrawal was meant to "rebalance the liquidity" of the coin to adjust for demand and insisted the project was intended to operate long term, according to the Times.
What is Adams saying?
NEW YORK, NEW YORK - SEPTEMBER 11: New York City Mayor Eric Adams stands by the FDNY memorial wall during the annual 9/11 Commemoration Ceremony at the National 9/11 Memorial and Museum on September 11, 2025 in New York City. Government officials joi
What we don't know:
Adams, who left office on Jan. 1 after one term, has not publicly commented on the withdrawal or the accusations. He previously said he did not plan to take payment from the venture, at least initially.
The rocky launch has raised questions about the execution and transparency of the project as Adams seeks to establish himself in business following ethics controversies and a federal criminal indictment that overshadowed his final months as mayor.
The Source: This report is based on information from the New York Times, Coinbase, and former Mayor Eric Adams.