NYC Mayor Mamdani: I don’t hold crypto and won’t buy Adams’ NYC Token
New York’s newly inaugurated mayor Zohran Mamdani told reporters he does not hold cryptocurrencies and will not buy former mayor Eric Adams’ commemorative “NYC Token.” Adams launched the token as a fundraising initiative for education and social causes, but shortly after launch there were reports that the project removed liquidity, causing multimillion-dollar losses for some investors. Nansen analyst Nicolai Søndergaard said the liquidity removal resembled a rug pull, trapping traders and forcing sales in low-liquidity conditions. Mamdani — who campaigned on affordability and previously backed stronger consumer protections for stablecoin issuers while on the city council — distanced his administration from Adams’ pro-crypto stance. His comments signal a policy and tone shift at City Hall and add to public scrutiny of the NYC Token’s tokenomics and market behavior. For traders, the story raises heightened reputational and regulatory risk for municipal-linked tokens, suggests potential increased scrutiny or regulatory responses in New York, and implies continued price vulnerability for NYC Token amid low liquidity and negative sentiment.
Bearish
The immediate market impact on NYC Token is likely bearish. Reports of liquidity removal that trapped traders resemble a rug pull — a well-known negative catalyst that rapidly erodes investor confidence and liquidity. Mamdani’s public refusal to hold or buy the token, combined with his pro-consumer-protection stance, increases political and reputational risk and raises the probability of regulatory scrutiny at the city level. In the short term, expect continued price weakness, forced selling in thin markets, widening spreads and low volume as holders exit. Medium- to long-term recovery would require clear on-chain evidence about the liquidity movement, governance or team action to restore trust, or formal regulatory/municipal clarifications; absent those, persistent skepticism and reduced retail demand will keep downward pressure on price. For traders: tighten risk controls, avoid entering large positions in low-liquidity token sales, and watch on-chain liquidity and wallet flows for signs of stabilization or further outflows.