The episode has returned Adams to the damage-control mode that characterized much of his single term as mayor, as crypto experts debated whether the launch amounted to a deliberate insider “rug pull” or a sloppy debut that savvier traders exploited, and questions mounted about the transparency and competence of his partners in the project.
Eric Adams, the former mayor of New York City, stood in Times Square on Monday to announce his first post-mayoral initiative: a new cryptocurrency meme coin called NYC Token, which he promised would fight antisemitism and “anti-Americanism” while transforming digital finance.
“We’re about to change the game,” Adams said. “This thing is going to take off like crazy.”
It did not. The coin surged to a valuation of nearly $600 million within minutes of its launch before plunging roughly 75% by that evening, the Associated Press reported. Crypto analytics firm Bubblemaps said an account linked to the token’s creation withdrew $2.5 million worth of coins shortly after launch — a pattern that some cryptocurrency experts said bore the hallmarks of a “rug pull,” a scheme in which insiders hype an asset and then quickly dump their stakes, leaving smaller investors with losses. Around $1.5 million was later returned, Bubblemaps said, though by then investor confidence had collapsed.
Others have suggested Adams and his inexperienced team were themselves exploited by savvier investors who took advantage of a disorganized debut.
Adams disputes misconduct
Through former campaign spokesperson Todd Shapiro, Adams denied profiting from the token or moving investor funds, calling reports to the contrary “false and unsupported by evidence.”
“Like many newly launched digital assets, the NYC Token experienced market volatility,” Shapiro said Wednesday. “Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.”
Adams attributed the appearance of withdrawals to activity by the token’s designated market maker, a firm that manages buy-and-sell orders for newly issued digital assets. FalconX, a digital asset broker, was named as among the market makers; the company declined to respond to the AP’s inquiries on the record.
Partners identified
Despite Adams’ public claims of transparency, he declined to name his partners in the project. The AP reported that Frank Carone, Adams’ former chief adviser and a one-time attorney for the Brooklyn Democratic Party, was closely involved in the launch, according to two people who spoke on condition of anonymity because they had been asked not to disclose the identities of those involved.
Yosef Sefi Zvieli, a real estate investor linked to several Israeli hotels, was also part of the token’s creation, Shapiro confirmed to the AP. Zvieli previously owned a Brooklyn college dormitory that drew student complaints of filthy conditions; after defaulting on his mortgage, he hired Carone as his attorney and subsequently converted the troubled property into a city-financed homeless shelter.
Neither Carone nor Zvieli appeared to have direct experience in cryptocurrency. Messages left with both men were not returned.
Belated crypto adviser
After the collapse, Adams sought guidance from Brock Pierce, a billionaire crypto investor and former child actor whose private jet Adams sometimes used as mayor. Pierce described himself as Adams’ “crypto adviser” but said he was only made aware of the project after its launch.
“Had I been consulted, I would’ve put together a team of more qualified people who knew what they’re doing,” Pierce said. He expressed confidence that “no one has run off with anyone’s money” and said he remained hopeful the project could be salvaged.
Trading patterns and investor losses
Bubblemaps’ analysis of publicly available trade records found that roughly 80% of the just over 4,000 accounts that invested in NYC Token bought in during a 20-minute window after the coin became available for purchase but before Adams publicly announced it. Bubblemaps founder Nicolas Vaiman said the window gave an advantage to insiders and traders who monitor new token launches closely.
“Political coins are driven purely by attention, and the crypto community is aware that attention peaks right after the launch,” Vaiman said. “People know you don’t want to stick around, especially for such a vague prospect, like fighting anti-Americanism or antisemitism. What does it even mean? How are you going to achieve that in a token?”
As of Wednesday, a majority of accounts that invested in the coin had lost money, per the Bubblemaps analysis. Fifteen traders were down at least $100,000; ten had netted $100,000.
A pattern among political coins
Political figures have faced mounting scrutiny over meme coin ventures. Argentine President Javier Milei faced fraud allegations after his own crypto promotion drew thousands of investors before swiftly collapsing. Coins launched by President Donald Trump and first lady Melania Trump also saw significant price swings upon release. The NYC Token’s investor count of just over 4,000 was far smaller than those ventures.
The token’s website stated that a “portion of the proceeds” would be divided evenly among three causes: antisemitism and anti-Americanism “awareness campaigns,” crypto education for city youth, and a scholarship initiative. The site did not specify which organizations would be supported or what percentage of proceeds would go to charitable purposes.
Benjamin Cowen, founder of crypto research firm Into the Cryptoverse, said the project faced a steep road to recovering credibility.
“It could be a legitimate project with just a really bad rollout,” Cowen said. “But the way it was launched didn’t instill a lot of confidence. It’s hard to regain trust in the crypto community.”