In brief
- A Bronx-born entrepreneur said former NYC Mayor Eric Adams stole his idea for NYC Token.
- A pitch deck shared with Decrypt features similarities to Adams’ project, which launched on Monday.
- A spokesperson for Adams said the project didn’t “withdraw” money as the token’s price cratered soon after debut.
A Bronx-born entrepreneur is drafting a cease-and-desist letter for the creators of Eric Adams’ NYC Token, claiming the former mayor of New York stole the concept from him.
“We’re 100% confident that he took this concept from us,” Edward Cullen, co-founder and CEO of digital assets firm Crescite, told Decrypt on Tuesday. “We were absolutely shocked yesterday that [Adams] launched this [token] with the same exact name and same general concept.”
On Monday, the recently departed mayor appeared in Times Square to promote NYC Token, a cryptocurrency project that Adams said would generate revenue to fight “antisemitism and anti-Americanism,” while also providing educational resources to the city’s underprivileged communities.
The Solana-based token jumped to a $600 million market cap, but plummeted shortly after its debut, recently sitting around $41 million. The token’s swift fall raised allegations of misconduct, as someone with access to a crypto wallet linked to the token’s creation pocketed nearly $1 million by removing liquidity from a Solana-based decentralized exchange.
In a statement to Decrypt, a spokesperson for Adams said NYC Token’s market maker “moved liquidity” as part of efforts to ensure a smooth trading experience. They added that “the team has not sold any tokens and are subject to lockups and transfer restrictions.”
In a revised statement, the spokesperson underscored, “THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT,” but they did not respond to questions about Cullen.
Late last year, Adams embarked on trips to Albania, Israel, and Uzbekistan in the twilight of his mayoral stint. As the token he promoted falls under increased scrutiny, onlookers have questioned why the official X account for NYC Token says it’s based in Europe.
A portion of NYC Token’s supply is earmarked for its creators and “C18 Digital,” which also owns and operates the website. The entity, under “C18 Digital, LLC,” was formed on Dec. 30, according to a database maintained by the Delaware Division of Corporations.
Cullen, who now lives in Tennessee, claimed that he pitched Adams on the concept of an NYC Token in June, in addition to a number of political action committees. He added that Crescite owns the domain “nyctoken.com” and has taken action to trademark the term.
Cullen claimed that Adams’ team had a lukewarm reception to the token’s concept, but they did not dismiss the concept entirely. He said he’s more upset by the notion that Adams “butchered the project,” as opposed to taking elements of it from him.
“We presented it as an opportunity to use digital assets to help the citizens of the city and make things more affordable,” Cullen said. “And they kind of shot it down, but kind of not really.”
A pitch deck shared with Decrypt details “NYC Token” under a different logo and color scheme compared to the project that Adams promoted. Another slide details how the token would be used to provide revenue streams dedicated to each of the city’s five boroughs.
Cullen said that Crescite planned to offer NYC Token through a private sale, with half of the proceeds diverted to yield-bearing assets. The remaining portion of the funds would go toward making venture investments, with holders having a say on allocations that are made.
Innovate NY, a political action committee chaired by Cullen, spent $81,400 in support of former New York governor Andrew Cuomo, who unsuccessfully ran as an independent against New York City Mayor Zohran Mamdani. The organization also spent $15,000 in opposition to the current city’s mayor.
In October, Innovate NY endorsed Cuomo for mayor. The organization, chaired by Cullen, said supporting NYC Token was a core part of its policy agenda. In a press release, the term “NYC Token” was trademarked.
Cullen ran against Adams for mayor in 2021. However, he did not appear on the ballot for the Democratic nomination, a race that Adams won. As a candidate, Cullen promoted the concept of inclusive capitalism, according to Ballotpedia.
In October, infrastructure firm BitGo said in a press release that it’s collaborating with Crescite on “faith-based digital asset initiatives.” Under the arrangement, the companies would explore the concept of a stablecoin that could be used to help fund church operations.
Last year, Cullen was knighted by the Catholic Church in a ceremony by Cardinal Timothy Dolan. Crescite itself is a Latin term featured in the Book of Genesis.
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