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ElizaOS token plunged 19% to a record low, founder declares it "dead"

2026-08-07 00:17:27
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ElizaOS token plunged 19% to a record low

ElizaOS fell 19% in 24 hours to a record low after Eliza Labs founder Shaw Walters said the token was "dead" and the Eliza Foundation was disbanding. Data showed that after the token hit a historical low of $0.000284 on Thursday, the trading price was $0.000285 as of the time of publication, with a market value of only $2.1 million.

The decline was due to Walters 'announcement that the foundation was disbanding. "This token is dead, completely dead," he said. He added that he no longer holds or supports the token. Development of the open source Eliza software will continue, but will not involve the token or foundation.

This decline marks a sharp reversal of a once dark horse token in the AI agency field. Before the project was renamed ElizaOS, the token, formerly known as AI 16Z, reached a peak market value of US$2.5 billion in January 2025.

Founders blame litigation and token culture

Walters said Eliza Labs reached a private settlement with a group of token holders represented by law firm Burwick Law, agreeing to hand over the remaining treasury and funds to them. He called the lawsuit "ridiculous" but said the project lacked funding to continue to respond. The lawsuit was filed in April and included Eliza Labs, Walters, Sebastian Quinn-Watson and AI 16Z DAO. The lawsuit alleges false publicity, deception, negligent misrepresentation and unjust enrichment. Court records show that the named plaintiff's claim was dismissed by mutual agreement on July 8 and could not be sued again, while the proposed class action claim was dismissed without prejudice. Walters and Burwick Law founder Max Burwick were contacted for comment, but no response was received as of press time.

Walters said there was no more money for token buybacks, and there was no foundation or future supply intervention to support the token. He also said he would not allow any other tokens to be associated with Eliza while he continues to build his underlying operating system. He wrote: "I want to start over because I own intellectual property and I will never let any token near Eliza again... I will never support any Eliza token."

ElizaOS is an open source framework for building and managing AI agents. The project was launched in October 2024 under the name ai16z, with the initial goal of raising US$75,000 to create an independent investor. In January 2025, the project was renamed ElizaOS due to Andreessen Horowitz's concerns about confusion with the a16z brand. The token was later relocated as well.

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