Despite the backlash, a spokesperson for Adams said he remains committed to funding education programs and supporting scholarships for underserved students through the token.
A spokesperson for former New York City Mayor Eric Adams has refuted accusations that he moved money or profited from the NYC Token, which launched on Monday and plummeted 80% in the first hour of launch.
“To be absolutely clear: Eric Adams did not move investor funds. Eric Adams did not profit from the launch of the NYC Token. No funds were removed from the NYC Token,” Todd Shapiro, a spokesperson for Adams, said in a statement to X on Wednesday.
Accusations of a potential rug-pull spread after the shortly after launch, with crypto analysts alleging that Adams’ team and investors out of more than $3.4 million.
Shapiro, however, said these allegations are “false and unsupported by evidence.”
“At no point was his involvement intended for personal or financial gain,” said Shapiro, who blamed the sharp token fall on “market volatility.”
NYC Token team gives different explanation
However, Shapiro’s comments that “no funds were removed from the NYC Token” appears to conflict with a previous statement from the NYC Token X account, it “rebalanced the liquidity” in response to the demand the token saw at launch.
It also said it added more funds to the NYC Token liquidity pool.
In an interview with FOX Business, Adams that proceeds from the NYC Token would provide funding to non-profits to raise awareness about antisemitism and through education programs.
Proceeds would also be used to support scholarships for NYC students in underserved communities, the former crypto-friendly NYC mayor said.
Related:
Shapiro said the controversial token launch has not altered in supporting those endeavors:
“Mr. Adams remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.”
NYC Token hasn’t moved much since initial collapse
DEXScreener shows that the is trading at $0.133, and has been hovering around that mark since it fell from $0.475 shortly after launching.
Over $400 million has been wiped from the NYC Token’s since its early highs.
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