• Eric Adams has denied claims that he pulled liquidity from or profited from the NYC Token after its launch.
• The NYC Token workforce confirmed that liquidity has been rebalanced, with on-chain information exhibiting a $2.5 million cashout.
• Amid elevated scrutiny of NYC token actions, business insiders criticized the superstar token launch.

Former New York Metropolis Mayor Eric Adams is below renewed scrutiny after claims that liquidity was pulled from the NYC token quickly after it went public, sparking suspicions of fraud amongst some buyers.

The declare surfaced on Adams’ official X account, the place a neighborhood word claimed the previous mayor personally eliminated funds from the mission. An Adams spokesperson denied the allegations, insisting that no investor funds had been transferred and that Adams didn’t revenue from the tokens.

Adams spokesperson Todd Shapiro issued a public assertion denying stories that Adams withdrew funds from New York Token. In line with the assertion, Adams didn’t transfer investor funds, didn’t revenue from the launch, and no funds had been faraway from the tokens. Shapiro mentioned Adams’ involvement is proscribed to publicly supporting the hassle, which focuses on blockchain schooling, offering nonprofit funding, and combating anti-Semitism and anti-Americanism.

The assertion added that the NYC token is designed as a voluntary mechanism to assist schooling and civic initiatives, and emphasised that post-launch market volatility just isn’t unusual for newly issued digital belongings.

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Liquidity adjustments and on-chain exercise

Considerations intensified after NYC Token’s official account confirmed that liquidity was faraway from the pool shortly after launch. The account mentioned the motion was taken to rebalance liquidity in step with demand and confirmed that extra funds had since been returned to the pool.

On-chain analytics platform Bubble Map reported that wallets related to NYC token deployers cashed out roughly $2.5 million close to the height of the token worth. Individually, X person AshCrypto mentioned that the token’s market cap reached $500 million, nevertheless it has fallen by greater than 80% in a brief time frame.

Business response and public criticism

The scenario additionally drew feedback from Uniswap founder Hayden Adams, who criticized the widespread pattern of celebrities issuing tokens. Adams argued that celebrities can reap the benefits of blockchain know-how with out harming buyers, and recommended that authentic tasks may generate better long-term worth.

Eric Adams introduced the NYC Token at a press convention in Occasions Sq. on January twelfth. In an interview with FOX Information, Adams mentioned proceeds will assist anti-Semitism schooling, blockchain schooling for New York Metropolis youth, and scholarships for college students in underserved communities.

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