Bittensor’s native token, TAO, plunged 25% in six hours, dropping from $337 to $253. The crash wiped out over $650 million in market capitalization and triggered $9.1 million in long liquidations.
Key Takeaways:
Covenant AI left Bittensor on April 8, alleging co-founder Jacob Steeves maintains centralized control. TAO plummeted 25% to $253, wiping $650 million in market cap and triggering $9.1 million in liquidations. Future trust in Bittensor remains shaky after Nvidia CEO Jensen Huang recently praised its decentralized AI. Covenant AI Exit and Grievances Allegations of Coercive GovernanceFurthermore, Dare asserts that Steeves maintains effective control over the triumvirate and resists any meaningful transfer of authority. He alleges that Steeves unilaterally implements changes without a formal process or consensus. According to Dare, other individuals involved serve merely as “legal shields”—positioned to bear accountability and legal risk while Steeves remains insulated from consequences.
The fallout triggered $9.1 million in long liquidations on Friday. Trading volumes surged to $1.72 billion on April 10, a massive spike compared to the $500 million average seen earlier in the month.
