Former Mayor Eric Adams Hijacked ‘NYC Token’ Concept, Startup Claims

A Bronx-born entrepreneur is drafting a cease-and-desist letter for the creators of Eric Adams’ NYC Token, claiming the previous mayor of New York stole the idea from him.

“We’re 100% assured that he took this idea from us,” Edward Cullen, co-founder and CEO of digital property agency Crescite, instructed Decrypt on Tuesday. “We have been completely shocked yesterday that [Adams] launched this [token] with the identical actual title and identical normal idea.”

On Monday, the just lately departed mayor appeared in Instances Sq. to advertise NYC Token, a cryptocurrency venture that Adams mentioned would generate income to battle “antisemitism and anti-Americanism,” whereas additionally offering academic assets to the town’s underprivileged communities.

The Solana-based token jumped to a $600 million market cap, however plummeted shortly after its debut, just lately sitting round $41 million. The token’s swift fall raised allegations of misconduct, as somebody with entry to a crypto pockets linked to the token’s creation pocketed practically $1 million by eradicating liquidity from a Solana-based decentralized trade.

In a press release to Decrypt, a spokesperson for Adams mentioned NYC Token’s market maker “moved liquidity” as a part of efforts to make sure a easy buying and selling expertise. They added that “the staff has not bought any tokens and are topic to lockups and switch restrictions.”

In a revised assertion, the spokesperson underscored, “THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT,” however they didn’t reply to questions on Cullen.

Late final 12 months, Adams launched into journeys to Albania, Israel, and Uzbekistan within the twilight of his mayoral stint. Because the token he promoted falls beneath elevated scrutiny, onlookers have questioned why the official X account for NYC Token says it is primarily based in Europe.

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A portion of NYC Token’s provide is earmarked for its creators and “C18 Digital,” which additionally owns and operates the web site. The entity, beneath “C18 Digital, LLC,” was fashioned on Dec. 30, based on a database maintained by the Delaware Division of Firms.

Cullen, who now lives in Tennessee, claimed that he pitched Adams on the idea of an NYC Token in June, along with a lot of political motion committees. He added that Crescite owns the area “nyctoken.com” and has taken motion to trademark the time period.

Cullen claimed that Adams’ staff had a lukewarm reception to the token’s idea, however they didn’t dismiss the idea totally. He mentioned he’s extra upset by the notion that Adams “butchered the venture,” versus taking parts of it from him.

“We offered it as a chance to make use of digital property to assist the residents of the town and make issues extra reasonably priced,” Cullen mentioned. “They usually type of shot it down, however type of probably not.”

A pitch deck shared with Decrypt particulars “NYC Token” beneath a distinct emblem and shade scheme in comparison with the venture that Adams promoted. One other slide particulars how the token can be used to offer income streams devoted to every of the town’s 5 boroughs.

Cullen mentioned that Crescite deliberate to supply NYC Token by a personal sale, with half of the proceeds diverted to yield-bearing property. The remaining portion of the funds would go towards making enterprise investments, with holders having a say on allocations which might be made.

Innovate NY, a political motion committee chaired by Cullen, spent $81,400 in assist of former New York governor Andrew Cuomo, who unsuccessfully ran as an impartial towards New York Metropolis Mayor Zohran Mamdani. The group additionally spent $15,000 in opposition to the present metropolis’s mayor.

In October, Innovate NY endorsed Cuomo for mayor. The group, chaired by Cullen, mentioned supporting NYC Token was a core a part of its coverage agenda. In a press launch, the time period “NYC Token” was trademarked.

Cullen ran towards Adams for mayor in 2021. Nevertheless, he didn’t seem on the poll for the Democratic nomination, a race that Adams gained. As a candidate, Cullen promoted the idea of inclusive capitalism, based on Ballotpedia.

In October, infrastructure agency BitGo mentioned in a press launch that it’s collaborating with Crescite on “faith-based digital asset initiatives.” Beneath the association, the businesses would discover the idea of a stablecoin that might be used to assist fund church operations.

Final 12 months, Cullen was knighted by the Catholic Church in a ceremony by Cardinal Timothy Dolan. Crescite itself is a Latin time period featured within the E-book of Genesis.