Ai16z DAO's Sudden $ELIZA Token Launch Stirring Backlash, Scams Fuel Chaos

Ai16z DAO’s Sudden $ELIZA Token Launch Stirring Backlash, Scams Fuel Chaos

Nov. 19, 2024. 1 min. read.

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In an unexpected move, Ai16z DAO launched the $ELIZA meme coin via Pump.fun, reaching an $80 million market cap within an hour, but triggering backlash and scams. The launch, which outshined a community-led $ELIZA token that debuted days earlier on Vvaifu, caused a 50% drop in value for the original token, leaving early investors upset and questioning Ai16z’s transparency after recent public assurances of no token plans.

Ai16z’s founder explained that the launch was a last-minute decision driven by internal milestones. Shaw, a partner at Ai16z DAO, emphasized separating Eliza AI’s intellectual property from the DAO to achieve artificial general intelligence independently. Shaw clarified that Ai16z did not launch the token but assisted a development team. To ease community discontent, a 10% airdrop of the new token supply was pledged to first $ELIZA holders. However, the lack of prior communication and allegations of insider trading by a partner further fueled outrage.

Scammers took advantage of the confusion by hijacking DEXScreener links, redirecting users to counterfeit tokens for hours, resulting in financial losses. The links have since been fixed.

Amid the turmoil, one trader turned a $1.9K investment into $3.67M, achieving a 1,925x return during the launch frenzy. Ai16z’s founder defended their decision, citing years of planning and inviting original $ELIZA project developers to collaborate. In a recent twist, Tron founder Justin Sun announced support for listing the first Eliza token on the HTX exchange to back the community.

Source: Ai16z DAO’s Surprise $ELIZA Token Launch Faces Backlash, Scams Add to Turmoil

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