Former New York City Mayor Eric Adams has refuted claims that he moved funds or profited from the NYC token after it fell more than 80% within the first hour of its launch.

“Recent reports alleging that Eric Adams moved money out of the NYC Token are false and unsupported by any evidence,” Todd Shapiro, a spokesperson for Adams, said in a Jan. 14 statement on X.

Shapiro attributed the token’s sharp drop to market volatility while noting that the former mayor’s involvement in the project was not “intended for personal or financial gain.”

Adams launched the Solana-based token on Tuesday, touting it as a means to combat rising hate and inspire the next wave of innovation in the city.

However, the token launch soon became mired in controversy after some crypto community members flagged on-chain data suggesting millions in liquidity were drained from the token’s pool.

Data from analytics platform Bubblemaps showed that a wallet linked to the deployer had removed $2.5 million in USDC liquidity when the token was trading at its peak, while another analysis estimated that at least $3.4 million had been removed.

At its peak, the NYC token reached a market cap of $580 million before it plunged to less than $130 million within the first hour, leading to widespread rug pull accusations.

Meanwhile, Shapiro’s statement claims “no funds were removed from the NYC Token,” the NYC token account said at the time that it “rebalanced the liquidity” using Time-Weighted Average Price mechanisms to manage the token’s price stability.

Further, it said that funds were being added to the liquidity pool gradually to reduce the impact of initial launch volatility.

As of publication, the NYC token is trading at $0.138, a level it has been hovering around since falling from its launch day peak.

NYC token will address antisemitism and anti-Americanism

During a Fox Business interview, Adams said that the proceeds from the NYC token would be directed toward raising awareness about antisemitism and anti-Americanism through educational campaigns. Further, a portion of the funds would go toward blockchain and crypto education, as well as supporting scholarships for students in underserved communities, he explained.

“The NYC Token is designed as a free, voluntary way to support educational and nonprofit efforts. Claims suggesting otherwise are inaccurate,” Shapiro said, adding that Adams “remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.”