Briefly
- A Bronx-born entrepreneur mentioned former NYC Mayor Eric Adams stole his thought for NYC Token.
- A pitch deck shared with Decrypt options similarities to Adams’ undertaking, which launched on Monday.
- A spokesperson for Adams mentioned the undertaking didn’t “withdraw” cash because the token's worth cratered quickly after debut.
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, advised Decrypt on Tuesday. “We have been completely shocked yesterday that [Adams] launched this [token] with the identical precise title and similar normal idea.”
On Monday, the lately departed mayor appeared in Occasions Sq. to advertise NYC Token, a cryptocurrency undertaking that Adams mentioned would generate income to struggle “antisemitism and anti-Americanism,” whereas additionally offering instructional sources to the town’s underprivileged communities.
The Solana-based token jumped to a $600 million market cap, however plummeted shortly after its debut, 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 almost $1 million by eradicating liquidity from a Solana-based decentralized change.
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 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In a revised assertion, the spokesperson underscored, “THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT,” however they didn’t reply to questions on Cullen.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 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's based mostly 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 accordance 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 fully. He mentioned he’s extra upset by the notion that Adams “butchered the undertaking,” versus taking parts of it from him.
“We offered it as a possibility to make use of digital property to assist the residents of the town and make issues extra reasonably priced,” Cullen mentioned. “They usually form of shot it down, however form of not likely.”
A pitch deck shared with Decrypt particulars “NYC Token” beneath a special brand and coloration scheme in comparison with the undertaking 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 means of 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 can be made.
Innovate NY, a political motion committee chaired by Cullen, spent $81,400 in help 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, in accordance with 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 Ebook of Genesis.
