The NYC Token, a cryptocurrency started by former New York City Mayor Eric Adams, has seen a big drop in value soon after it was launched in the market. At first, the token was valued at $730 million, but it quickly declined by more than 80% to about $90 million in just an hour. However, it has since bounced back to over $110 million.
Adams announced the NYC Token at a press conference in Times Square, calling it a “commemorative asset” that showcases the innovation and diversity of New York City. The total supply of the token is one billion. At launch, 80 million will be available for trading, with plans to increase that amount to 300 million.
The project plans to use some of its earnings to support youth education in cryptocurrency, promote anti-hate efforts, and provide scholarships for students in need. The project has come under scrutiny because it lacks important information, like details about its partners and a whitepaper, which are usually necessary for transparency in cryptocurrency projects. Some critics have expressed worries about the ethics of how the token was launched and managed.
BubbleMaps has flagged unusual activities in the liquidity pool linked to the NYC Token. This involves a large $1 million being moved in and out, as well as a puzzling $2.5 million taken out of USDC when the token was at its highest value. Analysts have compared this situation to the launch of Facebook’s LIBRA, which also dealt with claims of manipulating liquidity.
