NYC Token Controversy: Concept Theft Allegations and Volatile Market Debut

Source: TheCryptoUpdates Original Title: Original Link:

Former Mayor Faces Accusations of Concept Theft

A Bronx-born entrepreneur is preparing legal action against the creators of Eric Adams’ NYC Token, claiming the former New York mayor stole the cryptocurrency concept from his company. Edward Cullen, CEO of digital assets firm Crescite, told reporters he was “absolutely shocked” when Adams launched the token with the same name and general concept.

Cullen says he pitched Adams on the idea back in June, presenting it as a way to use digital assets to help city residents and make things more affordable. He claims Adams’ team gave a lukewarm response at the time, neither fully embracing nor completely dismissing the proposal.

Token’s Volatile Launch Raises Questions

The Solana-based NYC Token had a dramatic debut this week. It briefly reached a $600 million market cap before plummeting to around $41 million. This sudden drop sparked allegations of misconduct when someone with access to a wallet linked to the token’s creation reportedly pocketed nearly $1 million by removing liquidity from a decentralized exchange.

Adams’ spokesperson addressed the liquidity movement, calling it part of efforts to ensure smooth trading. They emphasized that “the team has not sold any tokens and are subject to lockups and transfer restrictions.” In a later statement, they added, “THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT.”

Political Connections and Trademark Claims

Cullen’s connections to New York politics add another layer to this story. He previously ran against Adams for mayor in 2021, though he didn’t appear on the Democratic primary ballot. His political action committee, Innovate NY, spent over $80,000 supporting former governor Andrew Cuomo’s mayoral campaign and $15,000 opposing the current mayor.

Interestingly, Innovate NY had already trademarked the term “NYC Token” and listed supporting such a token as part of its policy agenda. Crescite also owns the domain nyctoken.com, which Cullen says strengthens their claim to the concept.

Project Differences and Ongoing Scrutiny

The pitch deck Cullen shared with reporters shows a different vision for NYC Token than what Adams promoted. His version featured a different logo and color scheme, with plans to use token revenue to support each of New York’s five boroughs. Crescite planned a private sale where half the proceeds would go to yield-bearing assets, with token holders having input on investment allocations.

Meanwhile, questions continue about the official NYC Token project. Observers have noted that its X account says it’s based in Europe, despite being promoted as a New York initiative. A portion of the token supply is earmarked for creators and “C18 Digital, LLC,” an entity formed in Delaware just last December.

Cullen seems more upset about how the project was executed than about the concept being taken. He told reporters Adams “butchered the project” in its implementation. The entrepreneur, who was knighted by the Catholic Church last year, now lives in Tennessee but maintains his New York business connections through Crescite’s faith-based digital asset initiatives.

As this situation develops, it highlights the messy intersection of politics, cryptocurrency, and intellectual property. Both sides seem to have different stories about what happened, and with legal action potentially looming, this might not be the last we hear about NYC Token’s controversial beginnings.