Adams unveils NYC Token in Times Square; price plunges later

Former New York City Mayor Eric Adams announced the launch of a new cryptocurrency coin, dubbed NYC Token, in Times Square on Monday, presenting it as his first initiative as a private citizen. He said the token would also serve to beat back antisemitism and “anti-Americanism,” though he did not describe how the digital asset would support those ambitions.

Adams told the crowd, “We’re about to change the game,” and added, “This thing is going to take off like crazy.” Within minutes of its launch, the token surged to a nearly $600 million valuation, according to the Associated Press. But the coin then entered a rapid decline, losing nearly 75% of its value by that evening, the AP reported.

The decline followed an outflow tied to the token’s creation, Bubblemaps reported. The crypto-analytics firm said an account linked to the token’s creation withdrew $2.5 million worth of coins, triggering the selloff. Bubblemaps later said around $1.5 million was returned, but the AP reported that investor confidence had collapsed by then.

Some cryptocurrency experts said the rollout had “all the hallmarks of a ‘rug pull.’” They described the practice as a pattern common in celebrity-linked meme coins, where insiders hyped an asset and then quickly dumped their stakes, leaving amateur investors with deep losses. Others suggested Adams and his inexperienced team were instead duped by savvier investors who took advantage of what they described as a sloppy launch.

Spokesman says Adams did not profit; Adams calls reports false

As scrutiny mounted, Adams moved into damage control, a posture the AP said had defined much of his one-term mayoralty. In statements released in recent days through a former campaign spokesperson, Adams clarified that he had not profited off the token and had not moved investor funds, and he called reports to the contrary “false and unsupported by evidence.”

Todd Shapiro, the spokesperson, said, “Like many newly launched digital assets, the NYC Token experienced market volatility.” Shapiro also said, “Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.” The AP reported that Adams has so far declined to reveal the partners involved in the token.

Unnamed insiders say Frank Carone was involved; Shapiro confirms Zvieli

Two people close to the project told the AP on condition of anonymity that Frank Carone, Adams’ former chief adviser and one-time lawyer for the Brooklyn Democratic Party, was closely involved in the launch. The AP reported the identities were withheld because the people had been asked not to disclose those connected to the token’s creation.

Todd Shapiro also confirmed to the AP that Yosef Sefi Zvieli was part of the token’s creation. The AP said Zvieli’s involvement was first reported by Business Insider, and it described Zvieli as a real estate investor linked to several Israeli hotels. The AP further reported that Zvieli previously owned a college dorm in Brooklyn that drew complaints from students of filthy conditions and neglect, and that after he defaulted on his mortgage, he hired Carone and was able to turn the troubled property into a city-financed homeless shelter.

The AP said their exact role in the token launch was not immediately clear, and that at least part of Zvieli’s job involved reaching out to influencers before the debut. Messages left with Carone and Zvieli were not returned, the AP reported.

Brock Pierce advises Adams after questions swirl

After questions about the rollout surfaced, Adams sought guidance from Brock Pierce, described by the AP as a billionaire crypto investor and former “Mighty Ducks” child actor. The AP reported that Pierce had a private jet relationship with Adams during his time as mayor.

The AP said Pierce looked into the project and told the AP he was confident that “no one has run off with anyone’s money.” Pierce also said he was only made aware of the project after its launch, and he added, “Had I been consulted, I would’ve put together a team of more qualified people who knew what they’re doing.”

Concerns about politically promoted meme coins

In the largely unregulated world of meme coins, experts told the AP that projects promoted by politicians can be especially prone to unsavory trading practices. The AP cited examples including Argentina President Javier Milei, who has faced fraud allegations related to his own crypto promotion, and coins launched by President Donald Trump and his wife, Melania Trump, that saw major price fluctuations after release.

Bubblemaps founder Nicolas Vaiman told the AP that the number of accounts that invested in NYC Token totaled just over 4,000 as of Thursday. He said roughly 80% of those accounts bought in during a 20-minute period before Adams announced the coin, though after it was made available for purchase—an interval Vaiman said provided an advantage to insiders and other traders who watch new tokens closely.

Vaiman said, “Political coins are driven purely by attention, and the crypto community is aware that attention peaks right after the launch.” He added, “People know you don’t want to stick around, especially for such a vague prospect, like fighting anti-Americanism or antisemitism.” Vaiman also said, “What does it even mean? How are you going to achieve that in a token?”

Token website outlines causes but lacks details; market maker dispute

The AP reported that the NYC Token website said a portion of proceeds would be divided evenly among three causes: antisemitism and anti-Americanism “awareness campaigns,” crypto education for the city’s youth, and a scholarship initiative. The website, the AP said, did not detail which organizations would be supported or what percentage of proceeds would go to charitable causes.

Adams disputed that any money had been pulled by the token’s creators. He told the AP that the appearance of withdrawals was the result of adjustments made by the designated market maker, which the AP described as an entity that buys and sells orders of a new token so traders can purchase without major price shifts. FalconX was identified by the AP as one of the market makers, and the company declined to respond to inquiries on the record.

Where it stands for investors

As of Wednesday, the AP reported that a majority of accounts that invested in the coin had lost money, based on Bubblemaps’ analysis. It said 15 traders were down at least $100,000, while 10 had netted $100,000.

Pierce told the AP he was still hoping the project could be salvaged, saying, “the fate and outcome of this project will be determined in the coming days.” But Benjamin Cowen, founder of crypto research analytics firm Into the Cryptoverse, cautioned that trust could be difficult to rebuild, telling the AP, “It could be a legitimate project with just a really bad rollout,” and adding, “It’s hard to regain trust in the crypto community.”