The Bittensor network is going through a period of strong turbulence. In just 12 hours, the $TAO token recorded a sharp drop of -27%, wiping nearly 900 million dollars from its market capitalization.
🌊 A seismic liquidation event
This extreme volatility caught optimistic traders off guard: over 9 million dollars in "Long" positions were liquidated within a few hours, intensifying the selling pressure on the market.
🚩 The reasons for the panic: The "Drama" Covenant AI
The trigger for this bearish movement is the punchy announcement from Covenant AI, one of the flagship projects of the ecosystem. The team has officially left Bittensor, a departure accompanied by a massive sale of 37,000 $TAO (about 10 million dollars).
💬 Heavily weighted accusations
More than just a financial withdrawal, it's a frontal assault on the project's governance. The Covenant AI team justifies its decision by harsh criticisms towards the founder of Bittensor, accusing him of:
Staging a "decentralized theater" (mockery of decentralization).
Exercising excessive control over many aspects of the protocol.
Market opinion: Investor confidence is being put to the test. While the narrative of decentralized AI is at the center of attention, these accusations of centralization hit hard. It remains to be seen whether the Bittensor team can respond to stabilize the price.
#crypto #TAO #Bittensor #Altcoins #Trading
