Amid Liquidation Fears, Former NYC Mayor Endorses Token on Solana

Some members of the crypto community have accused the project team of stoking fears of eliminating liquidity. Rune flagged data indicating that $3.4 million has been withdrawn from the token liquidity pool. Bubble charts showed that $2.5 million USDC was removed from near the peak, with $900,000 not recovered after a partial increase.

Former New York City Mayor Eric Adams launched a Solana-based meme coin aimed at fighting anti-Semitism and supporting the city's next generation of innovation.

Called the New York City Token (NYC), the token was published on X on January 13 and quickly released for trading on Solana's decentralized exchange Jupiter.

In the post, Adams shared a link to Token's official website and said the project was created to fight the spread of anti-Semitism and anti-Americanism in the US and New York City.

The NYC token showed strong momentum initially after its launch.

It rose to $0.58 and reached a short-term market value of $580 million, according to DEXScreener data.

Liquid movements provoke accusations of carpet dragging

As the price dropped, allegations surfaced online that the team behind the token may have eliminated liquidity.

Crypto analyst Rune has revealed data indicating that at least $3.4 million has been withdrawn from the token's liquidity pool.

Separately, an analysis posted by BubbleMaps suggests that during the token's peak, a wallet linked to the token's issuer had liquidated $2.5 million USDC.

After the price had already fallen by more than 60%, it was added back to $1.5 million USDC.

Still, nearly $900,000 has not been recovered, fueling suspicion among some community members and investors.

The allegations were not proven, but the timing and extent of the liquidation activities quickly became the focus of discussion.

The group mentioned the TWAP strategy to manage volatility

In response to the concerns, NYC token X issued a statement stating that the project is using Time Weighted Average Value (TWAP) methods to manage price stability.

Funds are being gradually added to the liquidity pool to reduce the risk of further disruptions after initial volatility during the opening period, the bill said.

Despite this explanation, the show specifically focused on how liquidity will be handled for the newly launched Mamecoins, especially as trading speeds up on decentralized markets.

Website details token distribution and intended use cases

While the token's official website provides limited details about the project's long-term direction, Adams said in a Fox Business interview that proceeds from NYC Token will go to non-profit organizations focused on raising awareness of anti-Semitism and anti-Americanism through educational campaigns.

Other proposed use cases include funding blockchain and crypto education with scholarships for underprivileged community students.

Adams officially stepped down as mayor on January 1, after being replaced by Zohran Mamdani.