Eric Adams stood in Times Square on Monday to unveil his first business venture since leaving office.
The former New York City mayor introduced NYC Token, a cryptocurrency he claimed would generate funds to combat antisemitism.
Adams expressed confidence about the project’s prospects.
“This thing is about to take off like crazy,” he declared in a promotional video.
The coin’s initial performance exceeded even those optimistic predictions.
Within minutes of trading opening, NYC Token reached a market capitalization approaching $600 million. However, the meteoric rise proved short-lived.
The coin’s value plummeted almost immediately after an account connected to the launch withdrew approximately $2.5 million in early proceeds without warning.
The unexpected withdrawal spooked investors and sent the coin’s value tumbling.
By the following morning, the account had returned a portion of the withdrawn funds.
Nevertheless, Adams found himself defending against charges from cryptocurrency investors that NYC Token might constitute a rug pull, a fraudulent scheme where promoters market a coin publicly before rapidly draining profits.
The project’s leadership denied any theft occurred.
Despite these assurances, Adams brought in Brock Pierce, a cryptocurrency investor and personal friend, to help address the crisis.
Pierce confirmed his involvement in attempting to salvage the situation, The New York Times reported.
The chaotic launch represented a disappointing start to Adams’s business career. His single term as mayor had already been marred by ethics scandals and a federal criminal indictment.
Adams declined to comment on the turbulent events.
An X account affiliated with the coin attempted to reassure potential investors through a statement claiming the withdrawal simply aimed to “rebalance the liquidity” of the coin in response to demand.
The account insisted the project was “in it for the long haul.”
Pierce offered blunt criticism of the rollout in an interview.
The individuals working with Adams “did not have any of the necessary experience,” he stated.
The launch had “gone sideways,” appropriately alarming cryptocurrency enthusiasts who have previously suffered from similar schemes.
Pierce predicted clarity on the coin’s viability within approximately 72 hours.
He suggested Adams might require significantly more time to restore his standing within the cryptocurrency community, though he maintained the former mayor’s innocence.
“He’s going to have to do some work to restore that credibility,” Pierce said.
Cryptocurrencies like NYC Token exist in a legal gray zone in the United States.
The Biden administration pursued cryptocurrency-related crimes aggressively through federal prosecutors and securities regulators.
President Trump has substantially reversed that enforcement approach.
The Times noted that the Securities and Exchange Commission declared early last year that memecoins, cryptocurrencies based on internet jokes or celebrity mascots, would not face regulatory oversight.
Political figures and celebrities launching digital coins typically experience poor outcomes.
Adams followed the example of Trump, who introduced a digital currency called $TRUMP shortly before his recent inauguration.
The $TRUMP price briefly surged before declining, resulting in losses for hundreds of thousands of investors, according to the Times.
Nevertheless, the Trump family and business partners accumulated nearly $100 million in transaction fees within weeks.
The Times also reported last year that Argentine President Javier Milei announced $Libra, a cryptocurrency supposedly designed to strengthen his country’s economy.
The coin’s price surged initially, then rapidly collapsed, leaving investors with $250 million in losses.
The crash triggered accusations of insider profiteering and created a political scandal in Argentina.
