After a six-month ban, X restored the accounts of Shaw Walters and that of his agentic AI platform, ElizaOS, and it has set off a series response within the token value, which has risen by over 150% throughout the previous 24 hours.
The account of Walters, who operates underneath the deal with @shawmakesmagic, was restored alongside rising questions on platform energy over rising expertise corporations. The token’s market capitalization has hit $48 million following the information, although it stays considerably beneath its November peak, when it traded at almost $0.039.
ElizaOS is an open-source framework for constructing autonomous AI brokers that function throughout blockchains.
Why is ElizaOS surging?
ElizaOS went by main restructuring in November 2025, migrating from the AI16Z token at a one-to-six ratio and growing complete provide to 11 billion tokens.
Upon return, the Walters posted on X, “SO MUCH HAPPENED. We completed Eliza framework and migrated from ai16z to elizaOS. It was actually actually laborious with out X. We virtually died. However now we’re again, and we’ve acquired some issues constructed that I feel folks shall be excited by. Can’t wait to point out you.”
Nevertheless, the latest token surge, which was round 175%, has didn’t match that November excessive. The token presently trades at round $0.0064, which is an 83.17% decline from that all-time excessive.
Does this set a precedent for AI regulation?
Whereas some business contributors name for stricter regulation of AI-generated content material to keep up platform integrity, others view aggressive enforcement actions as probably anticompetitive habits that might stifle innovation.
The conflict between ElizaOS and X touches on the applying of AI on the social media platform, which additionally has its personal agentic AI platform, Grok, embedded on it, elevating eyebrows about honest play and antitrust violations.
The restoration of Walters’ account might also imply that the authorized tussle between each events has been resolved; nonetheless, neither Walters nor X has made any announcement that hints at that. It might additionally imply that X’s method could have relaxed relating to some functions of AI on its platform.
The ban of Walters’ and ElizaOS accounts, for what X referred to as a violation of its phrases of service, delivered to gentle ongoing tensions within the AI race and the utilization of a social media platform to thrust back competitors.
ElizaOS and X have a historical past
In an August submitting at a federal courtroom in San Francisco, Eliza Labs and its founder, Shaw Walters, accused X of launching copycat AI merchandise after being uncovered to key technical info from Eliza. The lawsuit additionally claims that X eliminated the corporate from its platform.
“This case entails X Corp wielding its unbelievable monopoly energy with perceived immunity from swimsuit to deplatform customers with the intent to restrain competitors for launching AI Brokers on the X Corp platform,” the lawsuit paperwork learn.
Of their argument, the plaintiffs mentioned that X suspended Eliza Labs’ account and removed Walters with out warning or legit justification.
This got here after X reached out to Eliza final 12 months to debate AI brokers working on X’s platform. Eliza. Throughout these conferences, Shaw Walters mentioned they shared intensive particulars in regards to the firm’s growth roadmap and imaginative and prescient for AI brokers.
Eliza claims that X mentioned it might want as much as $50,000 per thirty days for an enterprise license to proceed working on the platform. The lawsuit prompt X was forcing builders to pay “exorbitant” costs in the event that they needed to stay on the location, however Eliza claims it had declined to pay for such companies.
