Former New York City Mayor Eric Adams promoted a memecoin on Monday that some observers alleged had been rugged.

Adams, who left office on Jan. 1, unveiled the "NYC Token" and a related website at a press conference at Times Square on Monday, according to several local media sources.

However, several hours after the event, on-chain activity suggested that a large share of the token's liquidity might have been withdrawn. Rune Crypto alerted on X that at least $3.4 million had been drained.

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Onchain trading visualization platform Bubblemaps also flagged unusual liquidity activity around the token. The platform pointed out that a wallet (9Ty4M), which is connected to the token deployer, removed roughly $2.5 million in USDC at the market peak and later added back about $1.5 million after the token price had dropped more than 60%.

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Adams, who was replaced as MYC mayor by Zohran Mamdani on Jan. 1, has been a vocal supporter of the crypto and wider tech sectors, vowing to turn the largest U.S. city into the crypto capital of the world.