More than 60% of cryptocurrency traders lost money on NYC tokens

Note: not investment advice!

Former New York City Mayor Eric Adams, who left office two weeks ago, made a high-profile debut in the crypto space by launching his own NYC token. In less than a day after the launch, more than half of the 4,300 traders who bought the asset suffered losses, and the project took on the features of a classic «rug pull» with a sharp collapse after rapid growth.

The NYC token initially rose to a market capitalization of $ 600 million, but quickly fell below $ 100 thousand. Bubblemaps analysts found that a wallet associated with the developer withdrew about $ 2.5 million USDC from the liquidity pool at the peak of the price, and later returned $ 1.5 million and created large buy orders. The maneuver did not help stabilize the exchange rate, and the fate of another $ 1 million remained unknown.

According to analysts, 60% of investors lost money: most lost less than $ 1,000, but 15 traders suffered losses of more than $ 100,000. Experts compared the launch of NYC to other scandalous cases, such as the LIBRA token launched last year by Argentine President Javier Milei.

Amid the accusations of involvement in manipulations, Adams' representative Todd Shapiro said that reports of the politician’s withdrawal of funds are groundless. According to him, the project faced volatility typical of new tokens and was not intended for personal gain.

Adams is known as a supporter of cryptocurrencies: even before taking office, he announced that he would receive his salary in bitcoin. His term was accompanied by scandals and low ratings, which made it difficult to be re-elected. The launch of NYC was the first time he personally presented a crypto project, but the launch was unsuccessful and caused a wave of criticism.

No Worries strongly advises readers not to invest in dubious crypto projects and little-known digital assets!