ElizaOS Token Crashes To Record Low After Founder Calls It “Dead”

ElizaOS dropped 19% over 24 hours to an all-time low after Eliza Labs founder Shaw Walters declared the token “dead” and confirmed the Eliza Foundation is winding down.

CoinGecko data showed the token trading at $0.000285, after touching a record low of $0.000284, with a market cap of just $2.1 million. Walters said he no longer owns or supports the token, though development of the open-source Eliza software will continue without it.

Lawsuit Settlement Drained Remaining Funds

Walters said Eliza Labs settled privately with a group of tokenholders represented by Burwick Law, handing over the project’s remaining treasury. He called the lawsuit “ridiculous” but said the project couldn’t afford to keep fighting it. The suit, filed in April against Eliza Labs, Walters, Sebastian Quinn-Watson and the AI16Z DAO, alleged false advertising and unjust enrichment. The named plaintiff’s claims were dismissed with prejudice on July 8.

A Sharp Fall From A $2.5 Billion Peak

The token, originally launched as AI16Z in October 2024, once reached a $2.5 billion market cap in January 2025 before rebranding to ElizaOS after Andreessen Horowitz raised brand confusion concerns. Walters said there are no funds left for buybacks and no plan to support the token going forward, adding he would never let another token be tied to Eliza again.