Artificial intelligence is transforming finance, trading, and decentralized systems — but according to Eliza Labs founder Shaw Walters, trusting AI agents with large sums of money is a mistake. Speaking at Token2049 in Singapore, Walters cautioned that while AI-powered agents are advancing rapidly, their true potential today lies in data structuring and execution speed, not in managing capital or generating profits independently.
Walters explained that in their current form, AI agents function best as analytical interfaces and social data aggregators rather than autonomous investors. In January, Eliza Labs launched ElizaOS, an open-source platform built on the Solana blockchain, designed to create and manage AI agents and simulations. The project, formerly known as ai16z (AI16Z), underwent rebranding at the same time. Walters emphasized that these embedded Telegram-based agents can detect market sentiment shifts before they appear on platforms like X (formerly Twitter). “We can identify who’s genuinely good at forecasting and who’s trying to deceive the market,” he said, highlighting how AI can act as a filter against misinformation.
In April, Eliza Labs unveiled auto․fun, a platform allowing developers to create, deploy, and monetize AI agents. However, the company soon found itself in conflict with X Corp., Elon Musk’s social media company. In August, Eliza Labs filed a lawsuit against X Corp., accusing it of abusing its monopoly power and engaging in unfair competition. According to the lawsuit, X allegedly obtained key technical information from Eliza Labs, launched competing AI products, and then banned the startup’s official accounts without prior notice or explanation. Walters’ frustration was evident: “I just want my damn account back,” he told reporters.
Despite these challenges, Eliza Labs continues to innovate. The company is currently testing an over-the-counter trading platform managed by AI agents, allowing bots to negotiate token deals under predefined constraints. Walters is also exploring how AI could enhance Decentralized Autonomous Organizations (DAOs), addressing coordination problems that often slow community-based decision-making. “It’s about recommendations, analytics, and community coordination — not blindly following artificial intelligence,” he noted.
As the world races toward greater AI integration in finance, Eliza Labs stands at the intersection of blockchain, automation, and trust. Walters’ message is clear: before handing over your capital to AI, focus on using it as a tool for insight and efficiency — not a replacement for human judgment.
