AI Token Controversy: a16z's Two Eliza Tokens in Upper and Lower Case Stir Community Dispute, Users Criticizing "Whale Manipulation"

In the meme coin market, the DAO venture capital firm ai16z recently launched two tokens themed around "Eliza." However, due to factors such as the timing of token releases, the behavior of the internal team in development, and the impact on investors, it has sparked heated discussions within the community. Although ai16z founder Shaw and developer Logan have personally explained the situation, it has still faced strong criticism from the public, with some users even stating that it is "pump and dump" in nature.

Eliza Token Controversy Begins with Case Sensitivity, Rush Launch Sparks Internal Chaos

ai16z founder Shaw expressed on 11/9 in the community that developers are welcome to tokenize the AI character Eliza. Then on 11/16, a group of anonymous developers launched a token named ai16zeliza eliza via the platform vvaifu.fun. The token quickly gained market attention upon its release, with a market value reaching $50 million within a few days.

However, founder Shaw did not officially endorse this token. Instead, on 11/19, he announced a collaboration with another development team to launch a brand new Eliza token, ELIZA. This move caught the original eliza token holders off guard, sparking a conflict between the two tokens. The community criticized founder Shaw for lack of clear communication and handling of the situation.

New Token Launch Causes Old Token to Plummet, Raises Suspicions of "Insider Trading"

With the launch of the new token ELIZA supported by founder Shaw, the price of the first token eliza plummeted significantly, dropping from a high of $0.0915 to $0.032, a decrease of over 65%.

Controversy erupted within the community, accusing ai16z developer Logan of buying a large amount of the first token and quickly selling it off before the launch of the new token, raising questions of internal trading and conflicting interests among investors. Logan explained that he was not aware at the time if the first token was official and sold it for risk management purposes. He stated, "I had no malicious intent, as a developer and trader, I did not fully consider the consequences."

Founder Shaw Admits Mistake, Attributes Chaos to Coordination Error

Shaw admitted that the turmoil stemmed from internal communication and coordination errors, mentioning his delayed ICO collaboration with the development team, leading to the issue of the first token ai16zeliza eliza being rushed, and the subsequent failure to clarify the situation to the public, resulting in the current confusion.

Shaw stated in a live broadcast that this was a significant setback to his personal ideals, as he originally hoped Eliza would become a truly free AI character, but this incident cast a shadow over Eliza. Shaw further stated that he would continue to seek ways to remedy the situation and regain the community's trust.

Seeking Remedial Measures, Airdrops and Community Consensus Become Key

To compensate the affected holders of the first token eliza, Shaw announced that 10% of the new token ELIZA's supply would be distributed to the original eliza token holders through an airdrop, gradually carried out through a liquidity program.

Furthermore, he emphasized that both the new and old tokens ELIZA and eliza "are part of the ai16z community project," and future developments will depend on community support, with ai16z no longer intervening. While Shaw and Logan have publicly apologized and explained their reasons, the community's doubts about "internal trading" have not been quelled. Shaw stated that he would focus on "increasing transparency" in the future and ensuring that all projects are more in line with community interests.

Community Unconvinced, Clearly Engaged in Pump and Dump

Although founder Shaw has come forward to explain and promise compensation to the community, some users remain unconvinced. Many community users expressed confusion over Shaw's actions, as he initially suggested creating tokens independently, witnessed the skyrocketing price of the first-generation token eliza, then announced the launch of another token ELIZA, claiming all these tokens are "in-house ai16z projects," leaving the community puzzled.

Some users even stated on Twitter that ai16z was clearly engaged in pump and dump schemes, and investigations revealed suspected ai16z team members bought large quantities of ELIZA from different wallets after its launch, then boosted the price before selling. The wallet addresses are as follows:

It was also discovered that the ai16z community distributed 700 airdrops to over 10,000 holders of the new token ELIZA, raising doubts about whether such actions truly align with Shaw's statement of "seeking ways to remedy and regain community trust," leaving many questions unanswered.

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