New York City Mayor Mamdani Says He Holds No Crypto, Will Not Buy Adams' Memecoin

New York City Mayor Zohran Mamdani has stated he holds no cryptocurrency and will not invest in the recently launched NYC Token by former Mayor Eric Adams (). The announcement comes amid heightened scrutiny over the memecoin's performance and the concerns of a potential rug pull. Mamdani emphasized his focus on policy over personal investment in public assets.

Adams introduced the NYC Token on January 12, 2026, as a Solana-based memecoin with a stated mission of countering antisemitism. The token initially surged to a market cap of approximately $600 million before plummeting by over 80% within hours. This volatility has sparked concerns among investors and analysts, with several noting unusual liquidity movements.

Blockchain analytics firms have raised red flags as liquidity was reportedly removed from a one-sided pool on a decentralized exchange, raising concerns of manipulation.

Despite these issues, the project's website claims that 70% of the token supply will be allocated to a reserve wallet to support initiatives such as youth scholarships and support for historically Black colleges and universities (HBCUs).

Why Did This Happen?

Eric Adams has long been a proponent of cryptocurrency, having accepted his initial mayoral paychecks in Bitcoin and advocating for New York to become the 'crypto capital of the world'. The launch of NYC Token aligns with his history of supporting blockchain initiatives, though it has drawn criticism for its lack of transparency.

The token's sudden rise and fall reflect the speculative nature of memecoins, particularly those tied to political figures. On-chain data reveals that a wallet associated with the token's deployer removed significant liquidity during the price peak, further complicating the narrative of a publicly beneficial initiative.

How Did Markets React?

Despite the initial excitement, the market reaction to NYC Token was swift and severe. The token's market cap fell from $600 million to around $110 million within hours, wiping out hundreds of millions in paper value. This decline underscores the high volatility and risk associated with politically themed memecoins, which often rely on social momentum rather than fundamental value.

Retail investors were left grappling with the fallout, as several analysts flagged the project's centralization and unclear governance structure. The incident has also drawn comparisons to other politically linked tokens, raising broader concerns about the legitimacy and transparency of such projects.

What Are Analysts Watching Next?

Analysts are closely monitoring the regulatory and political responses to the NYC Token episode. The mayor's office has yet to issue a formal statement on the matter, while federal authorities have not taken action against the project. The absence of a clear regulatory framework for memecoins, especially those tied to public figures, has led to calls for greater oversight.

Mamdani's decision not to invest in the token signals a potential shift in the city's approach to cryptocurrency policy (). While Adams championed blockchain as a tool for governance and economic growth, Mamdani has emphasized policy over speculation, aligning with broader Democratic Party priorities.

The incident also highlights the challenges of distinguishing between public initiatives and private speculative ventures, particularly in the crypto space. As the market continues to evolve, the balance between innovation and regulation will likely remain a key focus for both investors and policymakers.

The broader implications for the crypto market remain uncertain. While Adams's token may not have long-term significance, the episode raises critical questions about the role of political figures in crypto projects and the risks associated with such ventures.