Eliza Labs founder Shaw Walters declared the ElizaOS (ELIZAOS) token “useless” and stated the muse is winding down, sending the altcoin token to a report low.
Walters posted the assertion on X, telling holders that no provide, buybacks, or basis help stay to defend the worth.
What Occurred With ELIZAOS
Walters stated regulation agency Burwick sued the challenge, and his aspect settled with a gaggle of holders. The staff handed over what he described as the remainder of the treasury and all remaining cash.
He known as the declare “ridiculous” however stated the challenge lacked the capital to struggle it in courtroom. Burwick filed the federal class motion within the Southern District of New York on April 22, 2026.
The criticism alleged that the challenge engaged in false promoting, misleading practices, negligent misrepresentation, and unjust enrichment. It additionally challenged the migration from ai16z to ElizaOS, which expanded provide from 1.1 billion to 11 billion tokens.
“Based on the criticism, on-chain information displays losses throughout a minimum of 3,945 buyer wallets, with whole class hurt believed to be within the a whole bunch of hundreds of thousands of {dollars},” the textual content learn.
The ai16z token launched on Solana (SOL) in October 2024. The challenge rebranded to ElizaOS in January 2025. At its January 2025 peak, ai16z carried a market capitalization of almost $2.4 billion.
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Why the ELIZAOS Token Crashed and What Walters Does Subsequent
ELIZAOS fell to a report low close to $0.000284 earlier at this time. At press time, it traded at $0.00029, down about 18% on the day. That left the token with a market capitalization of almost $2.15 million.
Walters revealed that he by no means bought his ai16z holdings and drew solely a modest wage, akin to that of the challenge’s different engineers. He stated he now not owns any tokens and can by no means connect a token to Eliza once more.
“The token is useless. Fully. The inspiration is winding down. I’m beginning over, since I personal the IP, and I’m by no means letting a token come near Eliza once more, perhaps,” he added.
Walters stated he needs the business to interrupt with its on line casino mentality and give attention to constructing actual merchandise. He added that he has turned bearish on crypto whereas staying optimistic about synthetic intelligence (AI).
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The submit ElizaOS Token Collapses to All-Time Low as Basis Shuts Down appeared first on BeInCrypto.