Former New York City Mayor Eric Adams has publicly denied allegations that he personally profited from the launch of the NYC Token, a Solana-based cryptocurrency he promoted. Adams and his spokesperson, Todd Shapiro, have labeled the accusations as "false," specifically refuting claims that Adams moved funds out of the project's wallet for personal gain.
The controversy erupted after the token's price collapsed by over 80% shortly after its launch, erasing hundreds of millions in market value. The token briefly reached a market valuation of nearly $580 million before crashing to around $0.133, where it has remained stagnant after an initial peak of $0.475. Reports allege total losses exceeding $400 million from the token's market capitalization, with some analysts estimating investor losses of more than $3.4 million.
The crash fueled accusations of a potential "rug pull," with on-chain analysts flagging unusual liquidity changes in the token's smart contract. In response, Shapiro insisted that "no money was taken from the NYC Token" and that Adams's involvement was never for personal financial gain, attributing the decline to market volatility.
Adams, a known crypto advocate who once pledged to take his mayoral salary in Bitcoin, stated the project was about "innovation and advancing New York as a tech-forward city." He outlined plans to allocate funds from the token to non-profits focused on educational programs against antisemitism and anti-Americanism, as well as to establish a scholarship program for students in marginalized New York communities.
The incident has intensified scrutiny at the intersection of cryptocurrency and politics, raising questions about transparency and accountability for public figures involved in blockchain initiatives. No formal investigation has been announced, but media and public attention remain high.
