Former Mayor Eric Adams Hijacked 'NYC Token' Idea, Startup Claims – Decrypt

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 belongings agency Crescite, informed Decrypt on Tuesday. “We have been completely shocked yesterday that [Adams] launched this [token] with the identical precise title and similar basic idea.”

On Monday, the not too long ago departed mayor appeared in Instances Sq. to advertise NYC Token, a cryptocurrency mission that Adams stated would generate income to battle “antisemitism and anti-Americanism,” whereas additionally offering instructional assets to town’s underprivileged communities.

The Solana-based token jumped to a $600 million market cap, however plummeted shortly after its debut, not too long ago 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 almost $1 million by eradicating liquidity from a Solana-based decentralized change.

In a press release to Decrypt, a spokesperson for Adams stated NYC Token’s market maker “moved liquidity” as a part of efforts to make sure a clean buying and selling expertise. They added that “the group has not offered 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In a revised assertion, the spokesperson underscored, “THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT,” however they didn’t reply to questions on Cullen.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 yr, 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.

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 shaped on Dec. 30, in keeping with 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 plenty 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’ group had a lukewarm reception to the token’s idea, however they didn’t dismiss the idea solely. He stated he’s extra upset by the notion that Adams “butchered the mission,” versus taking parts of it from him.

“We introduced it as a possibility to make use of digital belongings to assist the residents of town and make issues extra inexpensive,” Cullen stated. “They usually form of shot it down, however form of not likely.”

A pitch deck shared with Decrypt particulars “NYC Token” beneath a unique brand and colour scheme in comparison with the mission that Adams promoted. One other slide particulars how the token could be used to supply income streams devoted to every of town’s 5 boroughs.

Cullen stated that Crescite deliberate to supply NYC Token via a non-public sale, with half of the proceeds diverted to yield-bearing belongings. 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 unbiased 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, stated 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. Nonetheless, 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, in keeping with Ballotpedia.

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

Final yr, Cullen was knighted by the Catholic Church in a ceremony by Cardinal Timothy Dolan. Crescite itself is a Latin time period featured within the Ebook of Genesis.