NYC Token Implosion: Adams’ Project Crashes 99% Amid IP Theft Claims

The Lede

Former New York City Mayor Eric Adams’ return to the public eye has dissolved into chaos. Two days after Adams launched NYC Token (NYC) on Solana to purportedly fight “antisemitism and anti-Americanism,” the asset has effectively zeroed out. After briefly hitting a $600 million market cap on Monday, the token collapsed to $41 million in minutes and currently trades with a market cap below $500,000, a 99.9% drawdown.

The collapse coincided with accusations of intellectual property theft from Bronx entrepreneur Edward Cullen and on-chain data showing millions in liquidity vanished moments after the launch.

Liquidity Vanishes: The $3.18M Question

The primary driver of the crash was a massive liquidity extraction event. Blockchain analytics firm Lookonchain identified that a wallet linked to the deployer removed 3.18 million USDC from the liquidity pool at the token’s absolute peak. This action instantly drained the buy support, leaving retail traders holding bags as the price vertically collapsed.

The team has not withdrawn any money… the market maker moved liquidity to facilitate smoother trading.

A spokesperson for Adams denied a rug pull, claiming the funds were moved by a market maker to “ensure a smooth trading experience.” The market, however, voted with its feet: trading volume has evaporated, and the token is currently priced at $0.00048.

“He Took This Concept From Us”

As the chart flatlined, a second front opened. Edward Cullen, CEO of crypto firm Crescite, alleges Adams hijacked the entire project. Cullen claims he pitched a “NYC Token” concept to Adams last summer and that his firm already owns the domain nyctoken.com and related trademarks.

“We’re 100% confident that he took this concept from us,” Cullen told Decrypt, confirming his legal team is drafting cease-and-desist letters. The official website for Adams’ project is registered to “C18 Digital, LLC,” an entity formed just weeks ago on December 30 in Delaware.

Institutional Context

This debacle marks a disastrous start to Adams’ post-mayoral private sector career. While Adams famously took his first three mayoral paychecks in Bitcoin, this venture has damaged his credibility within the crypto native sector he sought to court. The combination of immediate liquidity removal, a hallmark of “pump and dump” schemes, and a high-profile IP dispute likely renders the project radioactive for serious investors or exchanges.