A spokesperson for former New York Metropolis Mayor Eric Adams has refuted accusations that he moved cash or profited from the NYC Token, which launched on Monday and plummeted 80% within the first hour of launch.
“To be completely clear: Eric Adams didn’t transfer investor funds. Eric Adams didn’t revenue from the launch of the NYC Token. No funds have been faraway from the NYC Token,” Todd Shapiro, a spokesperson for Adams, stated in a press release shared to X on Wednesday.
Accusations of a possible rug-pull unfold after the NYC Token fell over 80% shortly after launch, with crypto analysts alleging that Adams’ group eliminated liquidity and scammed buyers out of greater than $3.4 million.
Shapiro, nonetheless, stated these allegations are “false and unsupported by proof.”
“At no level was his involvement meant for private or monetary achieve,” stated Shapiro, who blamed the sharp token fall on “market volatility.”
NYC Token group offers totally different rationalization
Nevertheless, Shapiro’s feedback that “no funds have been faraway from the NYC Token” seems to battle with a earlier assertion from the NYC Token X account, stating it “rebalanced the liquidity” in response to the demand the token noticed at launch.
It additionally stated it added extra funds to the NYC Token liquidity pool.
In an interview with FOX Enterprise, Adams defined that proceeds from the NYC Token would supply funding to non-profits to boost consciousness about antisemitism and anti-Americanism by means of teaching programs.
Proceeds would even be used to help scholarships for NYC college students in underserved communities, the previous crypto-friendly NYC mayor stated.
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Shapiro stated the controversial token launch has not altered Adams’ place in supporting these endeavors:
“Mr. Adams stays dedicated to accountable innovation and to utilizing rising applied sciences to strengthen belief, schooling, and shared civic values.”
NYC Token hasn’t moved a lot since preliminary collapse
DEXScreener information reveals that the Solana-based token is buying and selling at $0.133, and has been hovering round that mark because it fell from $0.475 shortly after launching.
Over $400 million has been wiped from the NYC Token’s market cap since its early highs.
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