Eric Adams' NYC Memecoin Crashes After Debut, Sparking Outcry

Eric Adams’ NYC memecoin, launched on January 12, 2026, plummeted more than 81% within 30 minutes of trading, erasing roughly $500 million in peak paper value. The token briefly reached a market cap of $540 million–$600 million before crashing to approximately $87 million–$110 million. The launch was promoted through Adams’ verified X account and later annotated with a “rug pull” warning.

On-chain data reveals that a wallet linked to the token’s deployer removed $2.5 million in USDC from a liquidity pool at the token’s peak price. The wallet then added back $1.5 million as the price dropped over 60%, leaving about $932,000 unaccounted for. This liquidity manipulation intensified price volatility and created exit risks for retail investors.

One Solscan-tracked wallet executed five buys totaling 745,725 USDC and then sold for 272,177 USDC, suffering a $473,548 loss in under 20 minutes. The token’s supply was highly concentrated, with the top five wallets holding 92% and the top 10 holding 98.73%.

Why Did the Token Collapse?

The NYC token’s collapse centered on liquidity pool manipulation. A deployer-linked wallet removed liquidity at the asset’s peak, triggering a sharp price decline. This manipulation occurred amid a liquidity pool withdrawal that reduced the USDC backing the token’s value.

The token’s supply concentration amplified the impact of the liquidity removal. With the top wallet holding 70% of the supply, price discovery relied on a small number of wallets capable of moving the market.

How Did Investors React?

Retail investors faced significant losses due to the token’s rapid price drop. One trader lost over $473,000 in less than 20 minutes, highlighting the risks of trading in thin liquidity pools.

The token’s market cap fell from a peak of $540 million to around $87 million, wiping out 81% of its value in under 30 minutes. These losses occurred as liquidity was withdrawn and retail demand outstripped available supply.

What Are the Broader Implications for Memecoin Markets?

The NYC token’s collapse reflects ongoing concerns about memecoin volatility and transparency. Unlike traditional securities, memecoins often lack disclosure requirements, leaving investors vulnerable to manipulation.

Regulators have shown limited enforcement action against memecoin issuers, despite rising scrutiny of liquidity-pull tactics and insider allocations. New York legislation is exploring criminalizing certain rug-pull behaviors, which could affect future memecoin launches.

The episode underscores the risks of speculative trading in markets where liquidity is controlled by a few wallets. The NYC token’s collapse serves as a cautionary example for investors in the rapidly evolving memecoin space.