Author: Beosin
On January 13-14, former New York City Mayor Eric Adams faced significant scrutiny due to the sharp price drop of the token NYC after its launch. The Beosin security team conducted a detailed on-chain analysis of the incident and shares the results as follows:
Incident Overview
On January 13, Beijing time, former New York City Mayor Eric Adams announced the launch of the NYC token (token contract address: Ho5fkxk9uqUuVN5kt7TUFacduWCpKPAuYkM9HD3KAXA2) on social media. However, 30 minutes after the token went live, the liquidity pool creation address 9Ty4M4t9MZArhJBKFWbYrzeqdMf2Ua5eHWSRW3LXKyGt began to remove liquidity:
https://solscan.io/account/9Ty4M4t9MZArhJBKFWbYrzeqdMf2Ua5eHWSRW3LXKyGt
This address removed approximately 2,377,376 USDC, causing the price of the NYC token to drop by over 80%, with its market capitalization shrinking from a peak of $600 million to less than $100 million.
https://ave.ai/token/Ho5fkxk9uqUuVN5kt7TUFacduWCpKPAuYkM9HD3KAXA2-solana
On January 15, Adams continued to promote the NYC token by retweeting and stated through spokesperson Todd Shapiro that he did not profit from the NYC token and did not withdraw funds from it, but the community remained skeptical.
On-Chain Data Analysis
Through BeosinTrace's analysis of the Solana address 9Ty4M4t9MZArhJBKFWbYrzeqdMf2Ua5eHWSRW3LXKyGt, we can obtain relevant results regarding its on-chain behavior.
- Overview of On-Chain Activities
The address 9Ty4M obtained 1,000,001 USDC from the Mayan cross-chain bridge and a Kraken user address, and then created a NYC-USDC liquidity pool. After removing liquidity at 6:43 AM Beijing time on January 13, which led to a price crash, the address 9Ty4M began to continuously buy small amounts of NYC tokens starting from 4:15 PM that day, continuing to the present.
Further tracking of the cross-chain funds reveals that the funds originated from the Arbitrum address 0xBc985b167C5F3801B19E2Dec7082c2fcbBF07e91. Tracing back further, it was found that 90% of this funding was withdrawn from Kraken, and 10% came from an unknown multi-chain active trading address 0x276fbb81c8a7567ad2412469a549bd4dc82cab65.
- Transaction Data Analysis
According to BeosinTrace's data statistics, the address 9Ty4M has purchased 2,301,250 and 1,566,926 NYC tokens through addresses FWuiWEdkcR1NLPjozcEuErtGGDZG5kyPu3oszmnF8uni and H7Lnoh82SZghsXmoqffoCiFz7U3D1cwZ8ZPjRUMU7fc5 on Jupiter, respectively, but the NYC price only returned to 0.133-0.134, with a total market capitalization of approximately $130 million.
Currently, the address 9Ty4M still holds 1,332,243.85 USDC. Due to the limited liquidity of the NYC token, without considering the earnings from NYC tokens, this address has made a profit of approximately $330,000.
Conclusion
This incident involving a celebrity issuing a token has once again sparked significant controversy. The act of issuing a token itself faces multiple risks, including compliance, technology, and fund security. The removal of liquidity during this period, which led to a sharp drop in token prices, has had a negative impact on investors and the market.
The on-chain data analysis using BeosinTrace also confirms the existence of "liquidity manipulation" behavior. After the issuer withdrew $2.37 million in liquidity, although they continued to buy, they only returned about $1 million, with the remaining $1.33 million still held in the issuer's address. Users should enhance their security awareness and avoid trading such high-risk, easily manipulated tokens. Beosin will continue to monitor the liquidity situation of the token and the fund dynamics of related addresses to ensure the safety of users' funds.
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