Former NYC Mayor Launches Cryptocurrency, Faces Immediate Decline
NEW YORK — Eric Adams seemed to be on the upswing after his recent travels to Dubai and the Democratic Republic of Congo. Upon returning, he made his debut as a private citizen in Times Square, announcing a new initiative: the creation of a cryptocurrency that aims to combat anti-Semitism and what he termed “anti-Americanism.”
“We are changing things,” he stated, though he didn’t clarify how this new digital currency would achieve such goals. “This is going to move at an incredible rate,” he added, leaving many curious about the details.
However, the newly minted NYC Token surged to a valuation near $600 million shortly after launch but quickly plummeted, losing about 75% of its value by the end of the day. Reports suggest this decline was linked to the withdrawal of $2.5 million in coins by associated accounts, according to crypto analytics firm Bubble Maps.
Although around $1.5 million was eventually returned, confidence among investors had already taken a nosedive, leaving experts concerned it resembled typical patterns seen in celebrity-endorsed meme coins, where insiders artificially inflate value and then exploit it, leaving retail investors to bear the losses.
Some observers think that Adams and his team may have capitalized on what appeared to be a disorganized launch, potentially misleading inexperienced investors.
This situation sent Adams into damage control mode, reminiscent of his term as mayor, where he found himself defending his actions, taking aim at the media, and facing scrutiny regarding his close associates.
Through a former campaign spokesperson, Adams asserted that he had neither profited from the tokens nor mismanaged investor funds, dismissing allegations as “false and unsupported by evidence.”
“Like many new digital assets, NYC Token has experienced market volatility,” spokesperson Todd Shapiro stated. “Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.”
Connections and Controversies
Despite his emphasis on transparency, details surrounding the project’s partnerships remain scant. Two insiders confirmed that Frank Carone, a former chief adviser and attorney linked to Adams, played a substantial role at launch.
Additionally, a real estate investor with ties to Israeli hotels, Yosef Sefi Zwieri, was reported to be involved in the token’s creation. Zwieri previously faced criticism over properties he owned and later hired Carone to assist in converting a troubled property into a homeless shelter.
While their exact contributions to the launch remain unclear, part of Zwieri’s role reportedly included reaching out to influencers prior to the token’s debut. Notably, neither he nor Carone has evident expertise with cryptocurrencies.
Amid rising questions about the launch, Adams consulted with Brock Pierce, a billionaire cryptocurrency investor. He expressed confidence that “no one ran away with anyone’s money” but acknowledged that he would have preferred a different team had he been consulted earlier.
Political Friction in Crypto
Analysts warn that political coin projects often attract dubious trading practices, as seen with other politicians such as Argentina’s President Javier Millay, who faced fraud allegations related to a cryptocurrency launch that rapidly collapsed. Similarly, crypto initiatives tied to former US President Donald Trump also experienced erratic price movements.
The NYC Token has garnered interest from about 4,000 accounts, significantly fewer than larger ventures. Roughly 80% of these accounts purchased the coin shortly before Adams announced it, suggesting that insiders may have taken advantage of keen traders.
“Political coins are purely attention-driven,” noted Nicholas Weiman, founder of BubbleMap, pointing out that such ventures rarely hold interest beyond their initial hype. “What does it mean to combat anti-Americanism and anti-Semitism? How exactly do you expect to do that with mere tokenism?”
The coin’s website mentions that proceeds will support initiatives against anti-Semitism and anti-Americanism, as well as fund education in cryptography and scholarships. Yet, specifics about the charities or the percentage of proceeds allocated were not provided.
Uncertain Future
Adams contended that the funds were not withdrawn by the token creators, instead attributing withdrawal events to adjustments made by market makers, who buy and sell orders for new tokens. The majority of investors appear to have incurred losses following the launch, with some traders losing substantial amounts.
Pearce remains optimistic about the project, indicating that its future could be determined in the coming days. Still, skepticism persists within the cryptocurrency community, where regaining trust may prove challenging. Benjamin Cowen, founder of a crypto analysis firm, commented on the shaky launch, emphasizing that the lack of confidence will be hard to overcome.
