ElizaOS fell 19% over 24 hours to an all-time low after Eliza Labs founder Shaw Walters stated the token was “lifeless” and that the Eliza Basis was winding down.
CoinGecko information confirmed the token buying and selling at $0.000285 on the time of writing after touching a document 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 inspiration was winding down. “The token is lifeless. Utterly,” Walters stated, including that he now not owned or supported the token. He stated the event of the open-source Eliza software program would proceed with out the token or the inspiration.
The decline represents a stark reversal for one of many AI-agent sector’s former breakout tokens. Earlier than the challenge rebranded as ElizaOS, the token, then generally known as AI16Z, reached a peak market capitalization of $2.5 billion in January 2025, in line with CoinGecko.
ElizaOS’ 24-hour value chart. Supply: CoinGecko
Founder blames lawsuit and token tradition
Walters stated Eliza Labs privately settled with a gaggle of tokenholders represented by Burwick Regulation by agreeing to provide them its remaining treasury and funds.
He known as the swimsuit “ridiculous” however stated the challenge 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 promoting, misleading practices, negligent misrepresentation and unjust enrichment.
Courtroom information present the named plaintiff’s claims have been dismissed with prejudice by stipulation on July 8, whereas the proposed class’s claims have been dismissed with out prejudice.
Cointelegraph contacted Walters and Burwick Regulation founder Max Burwick for remark however had not acquired a response by the point of publication.
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Walters stated there have been no extra funds for token buybacks and no basis or future provide intervention to help the token.
He additionally stated he wouldn’t enable 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 help an Eliza token,” he wrote.
ElizaOS is an open-source framework for constructing and managing AI brokers. The challenge launched in October 2024 as ai16z with an preliminary aim 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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