The ElizaOS (ELIZAOS) token hit an all-time low Thursday after founder Shaw Walters publicly declared the project dead and announced the foundation is winding down. Walters stated that no supply, buybacks, or foundation support remain to defend the token price. The token fell to about $0.000284, with a market cap of roughly $2.15 million — a far cry from the nearly $2.4 billion peak the project reached under its former name, ai16z, in January 2025.
From ai16z to ElizaOS — and a 10x supply increase
The token originally launched as ai16z on Solana in October 2024. It rebranded to ElizaOS in January 2025. But the migration came with a controversial move: the supply ballooned from 1.1 billion to 11 billion tokens. That supply increase is now at the center of a federal class action lawsuit filed by law firm Burwick in the Southern District of New York on April 22, 2026. The complaint alleges false advertising, deceptive practices, negligent misrepresentation, and unjust enrichment.
What the lawsuit says
On-chain data cited in the suit shows losses across at least 3,945 customer wallets. Total class harm is estimated in the hundreds of millions of dollars. The lawsuit challenges the token migration itself, arguing it was structured to benefit insiders at the expense of retail holders. Burwick is seeking damages and disgorgement of profits.
Walters' side of the story
Walters claims he never sold his ai16z holdings and drew only a modest salary comparable to other engineers. He says he no longer owns any tokens and will never attach a token to Eliza again. In a statement that effectively ended the project, Walters said he wants the industry to move away from a casino mentality and focus on building real products. He added that he has turned bearish on crypto but remains optimistic about AI.
What happens next
The class action is still in its early stages. A judge has not yet ruled on class certification. Meanwhile, the token continues to trade at a fraction of its former value, with no foundation support or buyback program in sight. Walters' declaration leaves holders with little recourse beyond the courtroom.
