Former New York City mayor Eric Adams unveiled the NYC Token on Monday, claiming it would fund social causes like fighting antisemitism and “anti-Americanism.” But within hours, crypto analysts flagged suspicious activity.

This story is an excerpt from the Unchained Daily newsletter.

A wallet tied to the token’s deployer pulled $2.5 million in USDC liquidity at the market peak, only to re-add $1.5 million after the token’s price had already plunged more than 60%, according to Bubblemaps. The token’s market cap briefly touched $600 million before crashing below $110 million.

Observers likened the activity to the infamous LIBRA token collapse last year, where manipulated liquidity preceded a multi-million dollar wipeout. Critics also warned of centralized control and opaque fund flows.

Adams — once dubbed New York’s “Bitcoin Mayor” — didn’t name co-founders or clarify the token’s structure. While he claimed the project would help children learn about blockchain, the token’s chaotic launch has already drawn comparisons to past politically-backed crypto debacles.