Once a Big Bitcoin Supporter, Famous Name Launched Altcoin: Now Facing Accusations of Millions of Dollars in Fraud

Former New York City Mayor Eric Adams has come under fire for his association with the NYC Token cryptocurrency project.

Just hours after the project’s launch, the sharp drop in the token price sparked public speculation about a “rug pull scam.”

According to market data, NYC Token’s market capitalization quickly rose to approximately $580 million. However, this rapid rise was followed by a drop in value to around $130 million. Blockchain analytics platform Bubblemaps reported detecting “suspicious behavior” in token movements. According to their report, a wallet allegedly linked to the team distributing the project withdrew approximately $2.5 million in liquidity at the price peak. After the token price dropped by about 60%, $1.5 million was added back to liquidity from the same address, but approximately $900,000 remains unclaimed.

Related News: Tomorrow, a Major Altcoin Will Undergo a Critical Update – Here’s What Will Change and What You Need to Know

On social media platform X, numerous users accused Adams of “rug pulling,” alleging that he withdrew funds after promoting the project. Adams, long known as a public advocate for cryptocurrencies, stated at an event on Monday that some of the funds raised from NYC Token would be used to combat anti-American projects and to promote blockchain technology among young people.

NYC Token’s official website states that the total supply is 1 billion tokens and that the project team will receive a 10% share of the profits. However, Adams has not provided any information regarding the names of those involved in the project team. At this stage, there is no official investigation into the allegations.

*This is not investment advice.

Post Link: Once a Big Bitcoin Supporter, Famous Name Launched Altcoin: Now Facing Accusations of Millions of Dollars in Fraud