Eric Adams' NYC Token Crashes Amid Liquidity Extraction Allegations
A wallet connected to former New York City Mayor Eric Adams’ newly launched NYC crypto token reportedly extracted nearly $1 million by manipulating a liquidity pool. The token’s creator added 80 million coins to a liquidity pool, removed $2.43 million in USDC, then returned only $1.5 million, leaving $932,000 unaccounted for. Analytics firm Bubblemaps observed these unusual moves, which lack public explanation and resemble past cases of token manipulation, such as last year’s LIBRA token scheme tied to Argentine President Javier Milei. That scandal led to lawsuits, asset freezes, and widespread investor losses following similar liquidity manipulations. The NYC token, launched to address social issues and promote blockchain education, briefly reached a $600 million market cap before crashing over 80%. Data shows that wallets associated with these high-profile political tokens often follow a pattern of creating and draining liquidity, sometimes using public figures to legitimize projects before value collapses.
