- Eric Adams has denied claims that he pulled liquidity from or profited from the NYC Token after its launch.
- The NYC Token group 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 movie star token launch.
Former New York Metropolis Mayor Eric Adams is underneath renewed scrutiny after claims that liquidity was pulled from the NYC token quickly after it went public, sparking suspicions of fraud amongst some traders.
The declare surfaced on Adams’ official X account, the place a group notice claimed the previous mayor personally eliminated funds from the challenge. An Adams spokesperson denied the allegations, insisting that no investor funds have been transferred and that Adams didn’t revenue from the tokens.
Adams spokesperson Todd Shapiro issued a public assertion denying experiences that Adams withdrew funds from New York Token. In response to the assertion, Adams didn’t transfer investor funds, didn’t revenue from the launch, and no funds have been faraway from the tokens. Shapiro mentioned Adams’ involvement is restricted to publicly supporting the hassle, which focuses on blockchain training, offering nonprofit funding, and combating anti-Semitism and anti-Americanism.
The assertion added that the NYC token is designed as a voluntary mechanism to help training and civic initiatives, and emphasised that post-launch market volatility will not be unusual for newly issued digital belongings.
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Liquidity modifications and on-chain exercise
Issues 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 further 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 value. Individually, X consumer AshCrypto mentioned that the token’s market cap reached $500 million, however it has fallen by greater than 80% in a brief time frame.
Trade response and public criticism
The state of affairs additionally drew feedback from Uniswap founder Hayden Adams, who criticized the widespread development of celebrities issuing tokens. Adams argued that celebrities can make the most of blockchain know-how with out harming traders, and recommended that reputable initiatives might 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 help anti-Semitism training, blockchain training for New York Metropolis youth, and scholarships for college kids in underserved communities.
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