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Eliza Labs founder declares ELIZAOS token dead, urging holders to sell
ELIZAOS has fallen about 97% from its peak, and the ELIZAOS foundation is closing after funds were used to settle litigation, CoinDesk reports.
Eliza Labs founder Shaw Walters said the ELIZAOS token is finished, declaring it “completely” dead and telling holders to sell. Walters also said the ELIZAOS foundation is closing and that there will be no further foundation support, buybacks, or supply measures, while he plans to keep building the underlying ElizaOS software without launching a new token, according to CoinDesk.
ELIZAOS, which replaced the once $2.4 billion AI16Z token, is trading near $0.00031 with a market value of roughly $2.3 million, the outlet reported. CoinDesk also said ELIZAOS has dropped about 97% from its peak amid litigation and a settlement that drained the foundation’s remaining treasury.
CoinDesk reported that a proposed class action filed in federal court alleges the project misled investors about being an autonomous, AI-run venture fund and diluted holders during the AI16Z to ELIZAOS migration. The dispute is tied to a broader rise and unraveling of AI agent-themed crypto tokens, the outlet said.