From the NYC token controversy to industry reflection: How do celebrity tokens no longer become synonymous with "scams"?

New York, January 2026 — The blockchain industry is once again embroiled in controversy due to the involvement of a political figure. The NYC token launched by former New York City Mayor Eric Adams experienced a rapid surge and crash in market value within just a few hours, dropping from a high of nearly $580 million to approximately $130 million, sparking widespread skepticism and harsh criticism. The core of this controversy is not only the dramatic price volatility but also a deeper question: when public figures venture into the crypto space, what responsibilities should they bear?

Event Overview: The Birth and Controversy of the NYC Token

Eric Adams, the former mayor of New York who once proclaimed himself the “Bitcoin Mayor,” stood under a Times Square billboard just two weeks after leaving office to promote a cryptocurrency called the NYC token. This act itself was highly dramatic. Adams had advocated making New York the “world’s cryptocurrency capital,” and his first three mayoral salaries were paid in Bitcoin.

The NYC token was marketed as a social公益 project. According to Adams, the proceeds would be used to combat anti-Semitism, anti-Americanism, and to help children learn blockchain technology. The project’s official website describes it as “a new generation cryptocurrency inspired by the unceasing vitality and innovative spirit of New York City.”

Data Insights: Liquidity Withdrawal and Price Collapse

However, the optimistic vision was quickly shattered by data. According to a report from blockchain analysis platform Bubblemaps, wallets associated with the project’s deployment team withdrew about $2.5 million in liquidity at the high price point.

Although related addresses re-injected approximately $1.5 million after the price dropped about 60%, about $900,000 remained unrecovered. This operation directly caused the NYC Token’s market cap to plummet from nearly $580 million to around $130 million.

Worryingly, there is also a concentration of token holdings. Some crypto users pointed out that the top ten holders of NYC Token control 98.73% of the total supply, with one wallet holding 70% of the tokens alone. This highly concentrated ownership structure makes the token highly susceptible to manipulation.

Sharp Criticism from Uniswap Founder: Foolish Scammers

This incident drew strong criticism from Hayden Adams, founder of Uniswap. He openly stated on social media: “When celebrities use blockchain, they are basically like foolish scammers, often unaware that transactions are public.” Adams emphasized that blockchain technology itself is an “unprecedentedly powerful tool for collaboration, monetization, and value distribution,” used by millions worldwide, with increasing asset tokenization and genuine business models developing on this foundation.

He outlined legitimate ways for celebrities to profit from blockchain technology:

• Issuing tokens while maintaining liquidity stability
• Providing tangible benefits such as meet-and-greets or governance voting for token holders
• Maintaining transparency about project details and risks

Adams believes that honest management of blockchain projects allows celebrities not only to earn more but also to protect their reputation and avoid legal issues.

Industry Comparison: Correct vs. Wrong Blockchain Applications

To clarify the issues, we compare the controversial practices of the NYC token with the compliant approaches recommended by Uniswap’s founder:

Current State of the Crypto Market: Volatility and Opportunities

Amid the controversy surrounding the NYC token, the overall crypto market remains complex. According to Gate’s latest market data, as of January 14, 2026, Bitcoin’s trading price is $95,459.4, up 4.51% in the past 24 hours, with a market cap of $1.9 trillion, accounting for 55.99% of the market share. Ethereum trades at $3,336.54, up 7.54% over 24 hours, with a market cap of $401.45 billion and a market share of 11.79%. Gate platform’s token GT is trading at $10.79, up 4.76% in 24 hours, with a market cap of $1.07 billion.

These figures indicate that despite controversial projects like NYC token, mainstream cryptocurrencies continue to develop steadily and maintain market confidence. Institutional and individual investors recognize the long-term value of blockchain technology, and the market overall shows healthy growth.

Industry Reflection: The Crossroads of Celebrity Tokens

The NYC token incident is not just a failure of a single project but a warning for the entire celebrity token space. These projects often face several key issues:

First is a lack of trust and transparency. Many celebrity token projects lack clear roadmaps, transparent team information, and substantive product plans, relying solely on celebrity aura to attract investment.

Second is regulatory risk. As such incidents increase, global regulators may tighten scrutiny of celebrity-endorsed tokens, potentially introducing stricter disclosure requirements and investor protection measures.

Third is damage to industry reputation. Every failure of a celebrity token erodes public trust in the crypto industry, making it harder for truly innovative projects to gain recognition.

The essence of cryptocurrency is to build trust through technology, but the misuse of celebrity tokens is eroding this foundation. The industry needs to establish stricter self-discipline standards to ensure that public figures’ participation genuinely promotes adoption rather than short-term speculation. Blockchain’s transparency acts like a mirror that reveals every suspicious transaction with an indelible public record, often rendering celebrity halos pale in comparison.

As the NYC token incident continues to unfold, the crypto community is re-evaluating the roles and responsibilities of public figures in the blockchain space. Adams’ suggestion of “honest management of blockchain projects” should not only be advice for celebrities but also a fundamental principle for the entire industry. On platforms like Gate, investors can access various crypto assets; the platform’s responsibility extends beyond providing trading channels to include rigorous project vetting and educational resources, helping users distinguish genuine innovation from short-term speculation. The future of blockchain technology does not lie in creating more fleeting celebrity tokens but in building transparent, trustworthy value networks. Every incident like NYC token reminds us: establishing trust in this emerging field requires long-term effort, and it only takes one irresponsible act to destroy it.