AI agent token once worth $2.4 billion ends with founder calling it dead
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IN SHORT
Blockchain game developer Proof of Play is ceasing operations due to an unsustainable business model, with its a16z-backed studio planning to open-source its game assets and code. Separately, the founder of Eliza Labs has declared the ELIZAOS token "completely" dead, urging holders to sell. This token, which replaced the AI16Z token, has seen a 97% decline from its peak, attributed to litigation and a settlement that drained the foundation's treasury.
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Key Numbers
97%ELIZAOS token decline from peak
Who's Involved
Proof of Play
Blockchain game developer shutting down operations
a16z
Backer of Proof of Play studio
Eliza Labs
Company whose founder declared ELIZAOS token dead
Shaw Walters
Founder of Eliza Labs
ELIZAOS token
Token declared dead by its founder
AI16Z token
Token replaced by ELIZAOS token
PIRATE token
Token to be supported by an independent foundation
Key facts
Blockchain game developer Proof of Play is shutting down.
Proof of Play failed to establish a sustainable business model for decentralized gaming.
Proof of Play will open-source its game assets and code.
An independent foundation will continue to support the PIRATE token.
Eliza Labs founder Shaw Walters declared the ELIZAOS token "completely" dead.
Eliza Labs is closing its foundation.
Eliza Labs urged ELIZAOS token holders to sell.
The ELIZAOS token replaced the AI16Z token.
The ELIZAOS token has fallen 97% from its peak.
Litigation and a settlement depleted the Eliza Labs foundation's treasury.
Blockchain game developer Proof of Play is shutting down after failing to establish a sustainable business model for decentralized gaming. The a16z-backed studio announced it will open-source its game assets and code. An independent foundation will continue to support the PIRATE token.
In a separate development, Shaw Walters, founder of Eliza Labs, has declared the ELIZAOS token "completely" dead. He announced the foundation is closing and urged token holders to sell. The ELIZAOS token, which replaced the AI16Z token, has fallen 97% from its peak. This decline is attributed to ongoing litigation and a settlement that depleted the foundation's treasury.
↳ Why This Matters
Blockchain game developer Proof of Play is shutting down after failing to establish a sustainable business model for decentralized gaming. The a16z-backed studio announced it will open-source its game assets and code. An independent foundation will continue to support the PIRATE token.
Frequently asked questions
ELIZAOS was an AI agent cryptocurrency token that replaced the AI16Z token. It aimed to function as part of an autonomous, AI-run venture fund.
The founder, Shaw Walters, declared it dead due to litigation, a settlement that drained the foundation's treasury, and a significant price decline from its peak.
AI16Z was the original token launched on Solana, proposing an AI agent to make investment decisions. It was later rebranded to ELIZAOS after objections from Andreessen Horowitz.
The lawsuit alleged that the project misled investors about being an autonomous AI-run venture fund and that holders were diluted during the migration from AI16Z to ELIZAOS.
What Happens Next
01Eliza Labs will continue building the underlying software without launching a new token.
02The status of the federal case and settlement terms between Eliza Labs and Burwick Law are subject to ongoing inquiry.
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