Bittensor TAO crypto token is trading near $249, down over 4.5% in 24 hours and nearly 68% off its all-time high of $767.68, after one of the most damaging governance crises in the project’s history. The question isn’t just whether the price recovers. It’s whether the trust does. Covenant AI’s abrupt exit from the network has exposed a fault line that technical analysis alone can’t price in.On April 11, Covenant AI publicly quit the Bittensor subnet, accusing co-founder Jacob Steeves of holding disproportionate control over governance. The announcement immediately triggered panic selling. Analyst Michaël van de Poppe identified the core accelerant: Covenant’s founder dumped 37,000 TAO into the market, igniting a cascade of liquidations that sent TAO down nearly 25% from $330 to a low of $265.
Bittensor is rebuilding Stronger than before https://t.co/7i3h8lQWs0 pic.twitter.com/FqfhxpiCpg— Mars (@infinitetensor) April 14, 2026
The team has since responded with the Teutonic-I update and governance proposal BIT-0011, designed to prevent coordinated subnet exits from triggering similar sell-offs. Whether that’s enough to stabilize sentiment is the only chart that matters right now. The post A Bittensor Developer Dumped 37,000 TAO Crypto and Quit the Network: Is the Governance Crisis Just Getting Started? appeared first on Cryptonews.
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