NEW YORK (BLOOMBERG) — Eric Adams said he did not profit from the launch of the NYC Token memcoin he is promoting, which initially soared in value before crashing following its debut on Monday, prompting crypto market observers to draw parallels to a “rug pull.”
The former mayor of New York City said in a statement through his spokesperson Todd Shapiro that reports about Adams moving money out of the NYC Token were “false.” Rug pull is crypto slang for when project creators appear to withdraw or sell a significant number of tokens without explanation, often causing the value to collapse after a surge in the price.
NYC Token was launched on Monday, as Adams appeared in Times Sqaure and on the Fox Business television channel, saying that proceeds from the token will help fight antisemitism and educate children about the blockchain. However, the token had a rough start, as its value crashed to as low as below 10 cents after having surged as high as 58 cents.
“To be absolutely clear: Eric Adams did not move investor funds,” the statement on Adams’ X account said. “Eric Adams did not profit from the launch of the NYC Token. No funds were removed from the NYC token.”
A website for the token described it as a “community” cryptocurrency for New York City, one that would “represent the unstoppable energy of the Big Apple.” The token has no affiliation with New York City or any state or local government. It is still unclear who else was involved in the launch of the token.
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