NYC Token Crashes as Unusual Capital Flows Emerge
The NYC token, once championed by former New York City mayor Eric Adams, has seen its market value plunge from $600 million to under $100 million. Chain analysis from Bubblemaps reveals irregular liquidity management practices tied to the project’s core wallets.
Pattern of Cyclical Fund Movements Exposed
On-chain data shows a wallet closely linked to the project’s deployment (9Ty4...) established a one-sided liquidity pool on Meteora. It withdrew approximately $2.5 million in USDC at peak prices, then reinjected around $1.5 million after the token’s value dropped by over 60%.
- Capital flows show clear cyclical behavior
- Withdrawals at highs, reinjections at lows suggest strategic timing
- Imbalanced liquidity control raises red flags
This repeated cycling of stablecoins mimics trading volume and may mislead retail participants. While no illegality has been proven, such tactics erode trust and highlight vulnerabilities in decentralized finance ecosystems where power is concentrated.
The incident underscores the need for greater transparency and oversight, especially when project teams retain excessive influence over liquidity dynamics.