The recently launched NYC Token ($NYC) heavily plummeted within 30 minutes of its market peak, stirring controversy over alleged scam activities involving significant liquidity extraction by associated wallets.
The coin’s rapid crash highlights potential risks in crypto markets, affecting investor confidence and prompting scrutiny from on-chain analysts amid unaddressed liquidity manipulation accusations.
NYC Token Drops Over 80% Amid Supply Issues
Eric Adams’ promotion of the Solana-based NYC Token led to an abrupt crash, shedding over 80% in value. The token launched at a peak market cap of $540M–$730M, then sharply declined.
Rug Pull Concerns Arise Following Wallet Activity
The token’s collapse incited accusations of a “rug pull” due to on-chain evidence highlighting significant liquidity removal by a key wallet. This sparked concerns regarding the project’s legitimacy among analysts and community members.
Experts highlight the potential for significant financial losses among retailers who invested in the token. The incident underscores the risks associated with tokens with extreme supply concentration, as noted by outcomes in past occurrences.
Echoes of Past Memecoin Collapses Persist
The NYC Token situation echoes past memecoin crashes like TRUMP and MELANIA, where heavy insider-driven liquidity manipulation occurred. These crashes typically result in steep drawdowns and subsequent loss of investor confidence.
Kanalcoin experts suggest that the market may continue to experience volatility as a result of such events, emphasizing that investor caution is warranted given historical outcomes and prevailing market conditions.
“There has been no explanation for these liquidity moves. This is unfortunately reminiscent of the $LIBRA launch, where liquidity was also heavily manipulated.” — Bubblemaps, Analytics Platform
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