Fresh off high-profile trips to Dubai and the Democratic Republic of Congo, former New York City Mayor Eric Adams returned to Times Square this week with a bold announcement — his first major move as a private citizen. Standing beneath the city’s flashing billboards, Adams unveiled a new cryptocurrency, pitching it as both a financial innovation and a social mission aimed at combating antisemitism and what he described as “anti-Americanism.”
“We’re about to change the game,” Adams declared, offering few specifics about how a digital token could realistically advance such sweeping goals. Still, he promised rapid success, insisting the project would “take off like crazy.”
For a brief moment, it seemed he might be right. The token, branded NYC Token, skyrocketed almost immediately, reaching a valuation close to $600 million within minutes of launch. But the excitement didn’t last. By the end of the same day, the coin had lost nearly 75% of its value, sending shockwaves through its small but suddenly anxious investor base.
A Sudden Crash and Growing Suspicion
The dramatic plunge followed revelations that an account tied to the token’s creation had withdrawn roughly $2.5 million worth of coins, according to blockchain analysis by the crypto intelligence firm Bubblemaps. Although about $1.5 million was later returned, the damage was already done. Confidence evaporated, and speculation spread rapidly across crypto circles.
Some industry observers said the sequence of events bore the familiar signs of a “rug pull” — a notorious tactic in which insiders hype a token, drive up its price, then quietly cash out, leaving retail investors with heavy losses. Others argued the situation might be less sinister, suggesting Adams and his relatively inexperienced team were outmaneuvered by seasoned crypto traders who exploited a poorly executed launch.
Regardless of the explanation, the controversy placed Adams back in familiar territory: damage control. Much like during his single, turbulent term as mayor, he responded by rejecting allegations, criticizing media coverage, and deflecting questions about the competence of those closest to him.
Through a former campaign spokesperson, Adams issued multiple statements denying any wrongdoing. He insisted he had not profited from the token and had not authorized the movement of investor funds, calling reports to the contrary “false and unsupported by evidence.”
“Like many newly launched digital assets, the NYC Token experienced market volatility,” spokesperson Todd Shapiro said. “Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.”
Shadowy Partners and Limited Disclosure
Despite repeated references to transparency, Adams has declined to publicly name his partners in the project. However, two people familiar with the token’s creation confirmed that Frank Carone — Adams’ former chief adviser and a longtime political fixer — played a key role in the rollout. They spoke on condition of anonymity, citing instructions not to disclose internal details.
Another confirmed participant was Yosef Sefi Zvieli, an Israeli hotelier and real estate investor who previously hired Carone as his attorney. Zvieli’s past business dealings have drawn scrutiny, including ownership of a Brooklyn dormitory that students once complained was poorly maintained. After defaulting on the property, it was later converted into a city-funded homeless shelter.
While the precise responsibilities of Carone and Zvieli remain unclear, Shapiro acknowledged that Zvieli helped coordinate outreach to influencers ahead of the token’s debut. Neither man is known to have prior experience in cryptocurrency, and neither responded to requests for comment.
As criticism mounted, Adams reportedly sought advice from Brock Pierce, a billionaire crypto investor and former child actor who had previously lent Adams his private jet during his mayoralty. Pierce said he was confident no funds had been stolen but acknowledged he only learned about the project after it went live.
“Had I been consulted earlier, I would’ve put together a team of more qualified people,” Pierce said, adding that the launch lacked professional oversight.
Political Tokens and Volatile Patterns
Experts say crypto projects tied to political figures are particularly vulnerable to instability and questionable trading behavior. Similar ventures promoted by Argentina’s President Javier Milei and by former U.S. President Donald Trump and Melania Trump experienced sharp price swings shortly after launch.
In comparison, NYC Token attracted a relatively small pool of investors — just over 4,000 accounts, according to Bubblemaps founder Nicolas Vaiman. His analysis found that about 80% of purchases occurred within a narrow 20-minute window before Adams publicly announced the coin, giving early buyers a significant advantage.
“Political coins are driven entirely by attention,” Vaiman explained. “That attention peaks at launch, and experienced traders know it. When the mission is vague — like fighting antisemitism or anti-Americanism through a token — people don’t stick around.”
The project’s website claims that a portion of proceeds will support awareness campaigns, crypto education for young people in New York City, and a scholarship initiative. However, it does not specify which organizations will benefit or how much money will actually be allocated.
An Unclear Path Forward
Adams has disputed claims that insiders withdrew funds, arguing the apparent movements were routine adjustments made by market makers — firms tasked with providing liquidity and stabilizing prices. One such firm, FalconX, declined to comment publicly.
Data from Bubblemaps suggests that most investors are currently underwater. Fifteen traders have lost at least $100,000 each, while only ten accounts recorded gains of similar size.
Pierce said he still believes the project could recover, noting that its ultimate fate would become clearer in the coming days. Others in the crypto world are far less optimistic.
“It could be a legitimate idea with an incredibly poor rollout,” said Benjamin Cowen, founder of Into the Cryptoverse. “But trust is everything in crypto, and once it’s gone, it’s very hard to win back.”
For now, Inside the Troubled Rollout of Ex–New York City Mayor Eric Adams’ Crypto Token remains a cautionary tale — one that underscores how quickly political ambition, hype, and digital finance can collide, often with costly consequences.
