ElizaOS token sinks 19% to record low after founder declares it ‘dead’
Eliza Labs founder Shaw Walters said the project transferred its remaining treasury to settle a tokenholder lawsuit and will continue building Eliza without an associated cryptocurrency.
Eliza Labs founder Shaw Walters declared the project's cryptocurrency "dead," as the token's value plummeted 19% in just 24 hours, hitting a record low of $0.000284. The cryptocurrency's value had previously peaked at $0.000333 in January 2025 before its decline. Walters stated the project had transferred its remaining treasury to resolve a lawsuit and would continue developing the open-source Eliza software without the token or foundation.
The lawsuit, filed in April, alleged false advertising and deceptive practices but was dismissed by court on July 8. Walters dismissed the lawsuit as "ridiculous" and said the project lacked the capital to continue fighting it. He emphasized that no more funds would be available for token buybacks and that he would not allow another token associated with Eliza while building the operating system.
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