A Frenzied Showdown Between Two ELIZA Tokens Captivates Traders

The clash between two AI-themed tokens named ELIZA leads to a volatile trading session, showcasing the unpredictable nature of crypto markets.

Artificial intelligence (AI) could possibly threaten humanity in the future, but currently, humans are adept at promoting it for personal gain.

The innovators behind the recent AI project ai16z stumbled this week when they intended to launch a new token named ELIZA, only to discover that a competitor had launched first.

A chaotic trading environment emerged when two ELIZA tokens surfaced: one created by supporters of ai16z and another launched by its creator.

While the original token's market capitalization plunged from $40 million to $6 million in just thirty minutes of frantic selling, the new token soared to a peak of $100 million from nothing.

Many traders lost substantial sums on a memecoin that had borrowed its branding from a better-known project, which, in turn, had taken inspiration from one of the most recognized venture capital firms.

“One of our plans fell apart when we were outpaced by our own brand's mascot,” stated Shaw, the pseudonymous creator of ai16z. “We had a plan, and a story to tell, yet we were faced with an impossible situation.”

Eliza refers to an open-source AI framework designed for characters interacting with individuals on social media. Recently, Shaw authorized the new ELIZA token, ensuring a portion of it would benefit ai16z’s treasury.

In public statements, Shaw explained that early holders of the original token would receive 10% of the new token as compensation for their losses.

He asserted that this new token would be critical in developing an ELIZA-linked asset free from ai16z’s direct branding, poised for growth on its own.

By positioning itself within the AI movement, ai16z claims to function as a venture fund entirely overseen by an AI, aiming to surpass established entities. Token holders, boasting a market cap exceeding $300 million, will influence the AI leader known as Marc AIndresseen.

The new ELIZA token is deemed a separate creation by a different partner cooperating with the ai16z team.