AI agent token once worth $2.4 billion ends with founder calling it dead

MarketsAI agent token once worth $2.4 billion ends with founder calling it deadEliza Labs founder Shaw Walters said the ELIZAOS foundation is closing and that holders should sell, ending the token that replaced AI16Z after a lawsuit, a rebrand and a 97% crash.By Shaurya Malwa|Edited by Stephen AlpherUpdated Aug 5, 2026, 1:01 p.m. Published Aug 5, 2026, 12:28 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowShaw Walters, founder of Eliza Labs, declared the ELIZAOS token “completely” dead, said its foundation is closing and urged holders to sell, while vowing to keep building the underlying software without a new token.ELIZAOS, which replaced the once–$2.4 billion AI16Z token, has fallen about 97% from its peak to a roughly $2.3 million market value amid litigation and a settlement that drained the foundation’s remaining treasury.A proposed class action in federal court accuses the project of misleading investors about being an autonomous, AI-run venture fund and diluting holders during the AI16Z-to-ELIZAOS migration, highlighting the broader rise and unraveling of AI agent–themed crypto tokens.Nineteen months after AI16Z reached a $2.4 billion market cap, the founder of the project behind it has declared its successor token, ELIZAOS, dead and told holders to sell.Shaw Walters, founder of Eliza Labs and the open-source ElizaOS agent framework, said the ELIZAOS token is finished and its foundation is closing.“The token is dead. Completely,” Walters wrote on X earlier Wednesday. He said there would be no further foundation support, buybacks or supply measures, and that he plans to continue building the software without launching another token.I guess I should say something about the tokenLook. I worked my ass off to the point I got a frozen shoulder and severe health issues from overworking and typing, and it was never enoughWe built cool shit but it was completely ignored because numb…

AI agent token once worth $2.4 billion ends with founder calling it dead

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