TAO drop 20% after Covenant AI commot from Bittensor because governance
Bittensor TAO na be di worst for top-100, e drop about 20% to around $263 and e briefly touch near $253, di lowest since mid-March. Market cap commot to like $2.5B and TAO come down to around di 38th biggest crypto.
Traders dey link di selloff to Covenant AI wey comot from Bittensor network. Covenant AI talk say dem suspend emissions to im subnet, dem remove im permissions, and dem make changes without im involvement—dem dey present these claims as proof say governance dey centralized, after people accuse Bittensor co-founder Jacob Steeves say e dey control key decisions.
For social media, some users dey claim say Covenant AI fit don pre-position exit (including claims of big TAO sales before di headline) and dem point to volume spike about 24 hours earlier. Others however dey see technical rebound setup: TAO RSI around 16 (extremely oversold), we fit precede short-term mean reversion.
For TAO traders, di main question be whether follow-through selling go continue or market go shift to an oversold bounce.
Bearish
Covenant AI waka comot because dem get gbege over governance/emissions, wey go likely make bad headlines and uncertainty stay high for TAO for short term. Allegations say people bin pre-position and one volume spike before dey raise the chance sey selling pressure go continue instead of clean technical rebound. Even though TAO RSI don very oversold (fit cause short-term mean-reversion), the matter na political and risk sey more subnet/operators fit fall out, so price impact balance lean more down than up.