ElizaOS Token Plummets 40% as Supply Balloons to 11 Billion—’Growth Strategy’ or Desperation?
ElizaOS just turned inflationary economics into a freefall experiment.
The numbers don't lie
With circulating supply now at 11 billion tokens—up from 8 billion last quarter—the project's 'strategic expansion' looks more like a dilution party. Market cap? Shrinking faster than a DeFi rug pull.
VCs cheer while retail bleeds
Early backers got cliff unlocks, Main Street got cliffhangers. The whitepaper's 'tokenomics' section now reads like a dark comedy script.
What's next?
Team promises a 'buyback program' (translation: please don't sell). Meanwhile, crypto Twitter memes this as the latest 'build-and-dump' masterpiece. Stay tuned—or just stay away.
Binance Leads the Token-Swap – After Brief Delay
Binance Alpha 2.0 announced on October 31 that it WOULD suspend AI16Z trading on November 6 to facilitate the token swap on November 7, at 2:00 UTC. However, trading was briefly delayed due to liquidity setup issues by the ElizaOS project team.
After completion, Binance reopened trading for ELIZAOSUSDT at 06:30 UTC today, confirming the 1:6 swap ratio.
Other leading exchanges – MEXC, Crypto.com, Tapbit, CoinW, and Bitget, quickly followed Binance in supporting the swap, amplifying trading activity.
This coordinated exchange activity led to a massive jump in 24-hour trading volume, reaching $3.94 million, but it also magnified short-term volatility.
Supply Expansion Triggers Selling Pressure
The swapping increased the total supply from 6.6 billion to 11 billion, adding new liquidity to the marketplace but also diluting token value by roughly 83%. The circulating-supply ROSE to 7.48 billion, with 607 million tokens added for liquidity and 275 million for protocol-owned reserves.
While the MOVE aims to improve ecosystem liquidity, traders reacted defensively. The sudden supply-expansion prompted many holders to sell, leading to a rapid price correction.
Price Reaction: From Surge to Down
Before the swapping, AI16Z price jumped over 20% as traders anticipated the rebrand. However, following the relisting as ELIZAOS, the token’s price fell sharply by 28.14%, underperforming the broader crypto market, which slipped only 1.38%.
Analysts view $0.0085 (the post-swap equivalent of its 2024 lows) as a key support level — a break below could trigger deeper capitulation. Sustained recovery will depend on whether trading volume remains high and confidence returns as the project’s AI framework for autonomous agents gains visibility.
Bottom Line
ElizaOS’s price reaction highlights the classic post-rebranding challenge, balancing growth potential with short-term market adjustment. While the swap unified listings across top exchanges, investors remain cautious as the market digests new supply and revalues the token’s fundamentals.
A short-term volatility is expected to continue as traders reassess fair value under the new supply metrics. Sustained recovery will depend on liquidity support, community confidence, and the success of ElizaOS’s AI framework for autonomous software agents.
