Former New York Mayor’s NYC Token Launch Crashes 80% Within Minutes

Published: 2026-01-13 06:05:11 |

A token promoted by a former New York mayor, launched as “NYC Token,” crashed roughly 80% within minutes of its public listing. The project drew immediate attention because of its high-profile association, heavy initial marketing, and rapid liquidity events on decentralized exchanges. Early trading showed extreme volatility—large sell pressure and probable rug-pull dynamics as token prices plummeted and liquidity providers withdrew funds. On-chain data indicated sharp spikes in transaction volume and token transfers to exchanges soon after launch, consistent with sell-offs by early holders or insiders. The incident underscores the risks of celebrity-backed token launches: market manipulation, poor liquidity management, and limited investor protections. Traders should treat similar celebrity-associated launches with caution, monitor on-chain liquidity and holder concentration, set tight risk limits, and prefer established projects with transparent tokenomics and audited smart contracts.

Bearish

The rapid 80% crash shortly after launch signals a strongly negative market reaction. Such abrupt collapses typically reflect concentrated initial holdings, immediate sell pressure, or intentional rug-pull behavior—factors that undermine trust and liquidity. Historically, celebrity- or influencer-backed token launches that implode (e.g., various meme coins and celebrity-endorsed tokens) produce short-term contagion: panic selling, widened spreads, and heavier scrutiny from exchanges and regulators. For traders, expect elevated short-term volatility and likely continued downside as confidence evaporates. In the medium to long term, repeated occurrences of high-profile failures can reduce investor appetite for similar launches, compressing demand for new celebrity tokens and increasing due-diligence premiums. Therefore the immediate impact is bearish; longer-term effects include higher risk premiums, more stringent token vetting, and potential regulatory attention.