TAO, the token of Bittensor, plunged over 18% after Covenant AI, led by Sam Dare, exited the network, accusing founder Jacob Steeves of centralized control and selling off its holdings.
The sell-off erased recent gains, increased volatility, and pushed $TAO below key technical levels, with analysts warning of further downside. While sentiment in derivatives markets is mixed, uncertainty around governance continues to weigh on price outlook.