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Eric Adams’ post-mayoral debut in the world of crypto currency ran into a bit of a buzz saw this week, with his new coin, The NYC Token, plunging in value shortly after he announced it as the “future of digital currency” at a frigid Times Square event.
The token opened at 60 cents per share Monday afternoon and almost immediately sky dived to 10 cents a share. By Tuesday it was trading at around 13 cents, and the company running it had removed liquidity from the equation. Sites that cover crypto quickly accused developers of The NYC Token of “rug pulling,” effectively triggering big losses for those investors who jumped in at the start.
Meanwhile, a self-proclaimed tech entrepreneur, Eddie Cullen, reached out to THE CITY to say he was shocked about Adams’ announcement, claiming that he’d pitched the idea to the then-Mayor last summer and even trademarked its name NYCToken.
The ex-mayor, who was on the road in Dallas Tuesday, was unavailable for comment. And it was unclear what, if any effect the drop in value had on the deep-pocket investors backing Adams’ project. None of them have been disclosed.
But a spokesperson for The NYC Token, Elissa Buchter, acknowledged the dip in value and the removal of liquidity, but insisted that the secret team backing the endeavor took nothing from the account. Team members are entitled to a 10% cut of profits.
“After the launch of NYC Token, there was a lot of demand. Our market maker made adjustments in an attempt to keep trading running smoothly, and as part of this process, moved liquidity,” Buchter wrote in response to press inquiries. “The team has not sold any tokens and is subject to lockups (on sales) and transfer restrictions. THE TEAM HAS NOT WITHDRAWN ANY MONEY FROM THE ACCOUNT.”
The former mayor claimed he plans to use profits from the sale of the token to fund an unspecified effort to combat antisemitism and what he calls “anti-Americanism.”
Buchter framed the value collapse as a boost for that effort. “We are excited to see the response for this Token. It shows many people realize fighting anti-Americanism and antisemitism is important,” she said.
Tech entrepreneur Cullen had a different take. In an emailed response to THE CITY following publication Monday of a story on The NYC Token, Cullen claimed he’d met with the Adams administration early last year “detailing proprietary concepts and methodologies developed by my company: NYC Token™“
“We were surprised and confused by today’s announcement by the former mayor, because we had discussed our plans with the Adams administration many months ago, and our concepts and deck were widely circulated,” he wrote, noting that he’d obtained a trademark on NYCToken in July.
On Tuesday a spokesman for Adams, Todd Shapiro, said the former mayor would have no comment on Cullen’s assertions. Cullen did not return THE CITY’s calls seeking comment.