Bittensor (TAO) Collapses 20% Daily: Here’s What Happened
Bittensor (TAO) experienced a sharp 20% decline in its price, dropping to its lowest level since mid-March, primarily due to Covenant AI's exit from the network over concerns of centralized governance. Covenant AI also reportedly sold over $10 million worth of TAO tokens, contributing to a surge in sell volume prior to the announcement. This event has raised concerns about centralization within the Bittensor project and has negatively impacted investor confidence.
The broader cryptocurrency market has staged an evident revival over the past 24 hours, with multiple leading digital assets well in green territory. For instance, altcoins like Zcash (ZEC) and Dash (DASH) have pumped by 20-30% on a daily basis, while Arbitrum (ARB) and Hyperliquid (HYPE) have posted more modest gains of 5-6%. However, some, like Bittensor (TAO), have tumbled by double digits. The Biggest Loser TAO is the worst-performing cryptocurrency (at least in the top 100) today, with its valuation briefly sinking to $253, the lowest since mid-March. Currently, it trades at around $263 (per CoinGecko), down 20% from yesterday’s figure. Its market capitalization fell to approximately $2.5 billion, and now TAO is the 38th-largest cryptocurrency. TAO Price, Source: CoinGecko The price decline was likely triggered by Covenant AI’s departure from the Bittensor network. The entity is a research group focused on building decentralized AI models, best known for creating Covenant-72B. Covenant AI left Bittensor after claims that one person, co-founder Jacob Steeves, held too much control over key decisions. In their official message, they insisted that emissions to their subnet were suspended, their permissions were removed, and changes were made without their involvement, which they saw as proof of centralized governance. The news captured the attention of numerous crypto commentators. X user Ash Crypto claimed that, in addition to leaving Bittensor’s network, Covenant AI has reportedly sold 37,000 TAO worth more than $10 million. X user Ardi spotted another interesting development surrounding the cryptocurrency. He argued that 24 hours before the news, sell volume hit its highest level since December 2024. “If you think that’s a coincidence, you don’t understand the game you’re playing. This was a calculated exit and execution. The wallets that already knew what was coming were unloading into the breakout attempt yesterday, using that strength to nuke millions in ...
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