Former NYC Mayor Accused of Orchestrating $2.5 Million Memecoin Pump-and-Dump
The launch of the $NYC memecoin, promoted by former New York City Mayor Eric Adams, has rapidly devolved into allegations of a fraudulent scheme, with over $2.5 million reportedly liquidated by entities connected to the project within hours of its debut.
On Monday, January 12, 2026, Adams, who recently left office following the election of Zohran Mamdani, publicly endorsed the new NYC Token on the Solana blockchain through a press conference, social media posts, and interviews. Adams framed the token as a vehicle to “fight anti-semitism” and improve city services, stating, “We know cities can run better, and by using this New York City Token, we’re going to continue to invest in making our city a safer city.” He further emphasized his continued involvement, declaring, “I am not going anywhere.” The former mayor indicated that proceeds from the token offering would fund a new non-profit organization, with a commitment to initially forgo a salary.
However, blockchain analysis quickly revealed a concerning pattern. According to observers, the initial surge in trading volume was followed by a swift liquidation of at least $2.5 million worth of the token into Circle’s USDC stablecoin by individuals associated with the launch. This activity mirrored the classic pump-and-dump tactics frequently observed in the volatile world of Solana-based memecoins. Data from DEXTools showed the token’s price skyrocketing from approximately $0.12 to nearly $0.60 before plummeting back below its original value – all within a little over an hour.
The rapid price action and subsequent blockchain activity have led to accusations that Adams knowingly participated in a rug pull, a common scam in the cryptocurrency space where developers abandon a project and abscond with investor funds.
In a statement released on X, the NYC Token team attempted to address the concerns, claiming that “partners had to rebalance the liquidity” due to overwhelming demand. They acknowledged reports of liquidity removal but asserted that funds were “commenced for TWAP and added additional funds to the liquidity pool,” adding, “We’re in it for the long haul!”
This is not Adams’s first foray into the world of cryptocurrency. During his mayoral campaign and subsequent term, he enthusiastically embraced Bitcoin and earned the moniker “Bitcoin Mayor.” He previously launched New York City Coin on the Stacks blockchain, intended to fund government services through investment in the city-focused token. A similar project was launched in Miami around the same time, but neither token achieved significant traction despite mayoral endorsements.
The NYC Token debacle is the latest in a growing trend of celebrity-endorsed memecoin schemes. Over the past several years, figures ranging from Argentine President Javier Milei to social media personality “Hawk Tuah” and even former U.S. President Donald Trump have been linked to similar initiatives. Often, these projects follow the same pump-and-dump model, with celebrities receiving compensation for their endorsements or, in some cases, having their social media accounts compromised to promote the coins. Questions have even been raised about whether some alleged “hacks” were orchestrated by the celebrities themselves to distance themselves from potential scams.
While established cryptocurrencies like Bitcoin and stablecoins have demonstrated genuine utility, the vast majority of alternative tokens remain speculative and unproven. In many ways, memecoins represent a particularly transparent form of this speculation, openly embracing the “degenerate gambling aspect” of the crypto market. As one analyst noted, “It’s a casino, albeit one that is likely even more rigged than traditional markets or gambling venues.”
