The ai16zeliza token (commonly referred to as "eliza") began as an experimental project under the broader ai16z decentralized AI trading fund on Solana. Designed to showcase the potential of autonomous AI agents, eliza was created and distributed to the ai16z Foundation's wallet. It quickly gained traction, becoming one of the fund's largest holdings. With growing community interest and speculative excitement, eliza's market cap soared to an impressive $50 million, supported by its association with ai16z and its innovative AI-driven trading mechanisms.

However, controversy struck when Shaw, a partner at ai16z, publicly announced that eliza was not officially affiliated with ai16z. Framing the decision as granting "freedom" to the token, Shaw declared that ai16z would no longer support it and instead launched a new uppercase token, ELIZA, claiming it to be the "true" project. This announcement led to a massive sell-off of the original eliza, which saw its market cap plummet by over 87% within minutes, while the new ELIZA token rapidly gained traction, fueled by ai16z’s backing.

The split highlighted the tension between community-driven innovation and centralized control. While the eliza community rallied to assert its independence, critics accused ai16z of abandoning grassroots efforts for a more controlled alternative. Despite its turbulent journey, eliza remains a symbol of decentralized resilience, with its future now firmly in the hands of its community.