ElizaOS fell 19% over 24 hours to an all-time low after Eliza Labs founder Shaw Walters mentioned the token was “useless” and that the Eliza Foundation was winding down.
CoinGecko knowledge showed the token buying and selling at $0.000285 on the time of writing after touching a file low of $0.000284 on Thursday with a market capitalization of $2.1 million.
The drop got here after an announcement from Walters that the muse was winding down. “The token is useless. Fully,” Walters said, including that he not owned or supported the token. He mentioned the event of the open-source Eliza software program would proceed with out the token or the muse.
The decline represents a stark reversal for one of many AI-agent sector’s former breakout tokens. Earlier than the undertaking rebranded as ElizaOS, the token, then recognized as AI16Z, reached a peak market capitalization of $2.5 billion in January 2025, according to CoinGecko.
ElizaOS’ 24-hour worth chart. Supply: CoinGecko
Founder blames lawsuit and token tradition
Walters mentioned Eliza Labs privately settled with a gaggle of tokenholders represented by Burwick Legislation by agreeing to offer them its remaining treasury and funds.
He known as the swimsuit “ridiculous” however mentioned the undertaking lacked the capital to proceed preventing it.
The lawsuit, filed in April, named Eliza Labs, Walters, Sebastian Quinn-Watson and the AI16Z DAO as defendants. It alleged false advertising, misleading practices, negligent misrepresentation and unjust enrichment.
Court docket data show the named plaintiff’s claims had been dismissed with prejudice by stipulation on July 8, whereas the proposed class’s claims had been dismissed with out prejudice.
Cointelegraph contacted Walters and Burwick Legislation founder Max Burwick for remark however had not obtained a response by the point of publication.
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Walters mentioned there have been no extra funds for token buybacks and no basis or future provide intervention to assist the token.
He additionally mentioned he wouldn’t permit one other token to be related to Eliza whereas persevering with to construct its underlying working system.
“I’m beginning over, since I personal the IP, and I’m by no means letting a token come near Eliza once more […] I’m by no means going to assist an Eliza token,” he wrote.
ElizaOS is an open-source framework for constructing and managing AI brokers. The undertaking launched in October 2024 as ai16z with an preliminary objective of elevating $75,000 to construct an autonomous investor.
In January 2025, it rebranded to ElizaOS after Andreessen Horowitz raised considerations about confusion with its a16z model. The token was additionally later migrated.
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