Bittensor’s TAO token fell roughly 25% after the exit of Covenant AI, prompting co-founder Jacob Steeves to denounce former colleague Samuel Dare for a “deep betrayal” that he said inflicted “maximum pain” on the community. The sell-off wiped out an estimated $650 million in market value.
Key Developments
- Bittensor co-founder Jacob Steeves accused Samuel Dare of a “deep betrayal” following Covenant AI’s departure.
- TAO price dropped about 25% in the immediate aftermath.
- The decline erased roughly $650 million in market capitalization.
Accusations Following Covenant AI’s Exit
Steeves criticized Dare’s role in Covenant AI’s exit from the Bittensor ecosystem, alleging the move was orchestrated to harm the project and its investors. He characterized the decision as a deliberate act intended to cause “maximum pain” to the community. As of publication, Dare had not issued a public response referenced in the available materials.
Market Impact on TAO
The fallout from Covenant AI’s exit triggered swift selling pressure in TAO, driving the token down by approximately 25%. The move reduced the project’s market value by about $650 million, underscoring the sensitivity of AI-focused crypto assets to governance disputes and contributor departures.
About Bittensor (TAO)
Bittensor is a decentralized network designed to incentivize and coordinate machine learning and AI services. TAO is the native token used for participation, incentives, and governance within the ecosystem. Significant contributor changes or perceived shifts in project direction can materially affect token sentiment and liquidity.