A Bittensor Developer Exits After Dumping 37,000 TAO Cryptos: Governance Crisis in Full Swing?
Key Takeaways:
- TAO price plummeted to $249, about 68% drop from its peak of $767.68, due to governance issues.
- Covenant AI’s exit on April 11 exposed significant governance fragility within Bittensor.
- The TAO network’s recovery hinges on regaining trust through new updates like Teutonic-I and BIT-0011.
- Technical indicators are bearish, with the price stuck between $250-$263 amidst heightened market scrutiny.
- Market focus shifts towards whether TAO’s governance stabilizes to reclaim investor confidence and price levels.
WEEX Crypto News, 2026-04-15 14:50:13
Governance Crisis Hits Bittensor Following TAO Dump
After a tumultuous few weeks, Bittensor’s TAO is under intense scrutiny. The TAO token price crashed nearly 68% from its all-time high of $767.68, currently trading at $249. The catalyst—a pivotal governance crisis—unfolded swiftly following Covenant AI’s dramatic exit on April 11.
Covenant AI accused Bittensor’s co-founder, Jacob Steeves, of having excessive control over the project’s governance. The immediate aftermath saw Covenant’s founder offload 37,000 TAO, leading to a market panic that slashed TAO’s price from $330 to a low of $265. Amidst this downturn, the Bittensor team introduced the Teutonic-I update and the BIT-0011 proposal to mitigate hazards from subnet exits. These measures aim to avert repeat panic-induced sell-offs, but their efficacy in restoring market confidence remains to be seen.
Charting TAO’s Next Move: Recovery or Further Downturn?
The TAO token is precariously testing its $250-$263 support range, which looms as one of its most critical zones in recent trading history. The overall technical outlook is bearish, plagued by a negative MACD crossover and repeated rejections of a declining trendline. With recent highs failing to breach $390 and falling short of a $475 peak, bearish patterns are asserting themselves.
Social and search interests in TAO have spiked significantly, a sign traditionally linked to volatile movements rather than a steady trend. If sentiment concerning the governance stabilizes, and the relevant proposals are ratified, TAO could swiftly reclaim $281, possibly setting its sights back on $330. However, investor trust takes time to rebuild, and without clearer signals, prices will likely vacillate between $250 and $281. The risk remains that sustained governance difficulties could weaken the $250 support, ushering in a slump to the low $200s or even lower.
LiquidChain Enters the Fray Amid TAO’s Uncertainty
The Bittensor crisis underscores how crucial robust governance is for decentralized infrastructures. Despite a compelling AI narrative, TAO’s current struggles showcase the vulnerabilities of structural trust failures. Astute traders are increasingly considering early-stage infrastructure plays like LiquidChain, which seeks to leverage asymmetrical advantages in a volatile landscape. LiquidChain aims to unify Bitcoin, Ethereum, and Solana ecosystems, offering a competitive edge through a Unified Liquidity Layer. It’s currently in presale at $0.01449, raising $673,819.16 so far, signaling profound institutional interest in its cross-chain infrastructure.
FAQ
What Triggered Bittensor’s Recent Governance Crisis?
The crisis was ignited by Covenant AI’s exit and allegations against co-founder Jacob Steeves concerning over-governance, leading to a massive sell-off of TAO tokens.
How Did Covenant AI’s Actions Affect TAO Prices?
Covenant AI’s founder’s market unloading of 37,000 TAO tokens triggered a panic-selling cascade, dropping prices from $330 to a $265 low almost overnight.
What Is the Importance of Teutonic-I and BIT-0011 Proposals?
These initiatives are critical responses aimed at preventing future panic exits from subnets and stabilizing the governance structure, essential for regaining investor trust and stabilizing TAO prices.
Can TAO Prices Rebound Above $281 Soon?
Although technical signals remain bearish, improved governance prospects might help TAO reclaim $281. However, any rebound is contingent upon the successful implementation of new governance reforms.
What Is LiquidChain’s Role in Current Market Dynamics?
LiquidChain presents itself as an attractive alternative during TAO’s tumult, offering a Unified Liquidity Layer across leading blockchain networks. Its early development stage and unique proposition attract significant investor focus, especially amidst heightened market volatility.
You may also like

The financial tricks of the crypto giant Kraken

When proactive market makers start to take initiative

Tom Lee Says ‘Mini Crypto Winter’ Is Over, Sees Ether Above $60K
Key Takeaways: Tom Lee predicts Ether’s resurgence, projecting it to surpass $60,000 in the coming years. Bitmine suffered…

French Government Tackles Rising Crypto Safety Concerns
Key Takeaways: France is intensifying measures to counter the surge in crypto kidnappings and wrench attacks. Since early…

Europe’s Bitcoin Treasury Playbook Unlikely to Mirror US Strategy: PBW 2026
Key Takeaways: European firms are adapting unique Bitcoin treasury strategies due to distinct financial regulations and market dynamics…

Circle Confronts Lawsuit Over $280M Drift Protocol Hack
Key Takeaways: Circle faces a lawsuit for allegedly aiding in the transfer of $230 million in stolen USDC.…

Bitcoin Faces ‘Near-Term Selling Pressure’ Following Surge to $76K: CryptoQuant
Key Takeaways: Bitcoin reaches a multi-month high of $76,000, prompting increased deposits to exchanges. CryptoQuant identifies a peak…

Ethereum Foundation Unveils North Korean Infiltration in Web3
Key Takeaways: The Ethereum Foundation’s ETH Rangers program exposed 100 North Korean operatives infiltrating Web3 companies. The Ketman…

Crypto in Sustained Winter as CEX Volumes Drop 39% in Q1
Key Takeaways: Centralized crypto exchange trading volume fell by 39% in Q1 2026 to $2.7 trillion. March saw…

Bitcoiners Should Prepare for Quantum Computing Now, Urges Adam Back
Key Takeaways: Adam Back emphasizes immediate steps toward quantum-resistant solutions for Bitcoin. Quantum computing may disrupt blockchain security…

Cybersecurity Alert: Counterfeit Ledger Devices on Chinese Market
Key Takeaways: Scammers distribute fake Ledger devices via Chinese marketplaces, risking user crypto assets. Victims of a related…

Texas Individual Sentenced in $20M Meta-1 Coin Scam
Key Takeaways: Robert Dunlap sentenced to 23 years for his role in Meta-1 Coin fraud, misleading investors about…

Zanzibar police investigate crypto executive Joe McCann following fiancée’s death
Key Takeaways: Joe McCann, founder of Asymmetric, held for questioning by Zanzibar police after fiancée Ashly Robinson’s death.…

Latest Crypto Developments Expose Security Risks and Regulatory Challenges
Key Takeaways: The Ethereum Foundation’s Ketman Project unveiled 100 North Korean operatives in Web3, showcasing major security risks.…

Grinex Exchange Faces $14M Hack, Trading Suspended
Key Takeaways: Grinex, a Kyrgyzstan-registered crypto exchange linked to Russia, lost $13.7 million in an advanced cyberattack. US…

Ex-Treasury Chief Warns of US Treasury Market Crash and Calls for Debt Plan
Key Takeaways: Former Treasury Secretary Henry Paulson warns of a potential US Treasury market crisis and urges for…

At least 12 Crypto Protocols Targeted Post-Drift Hack
Key Takeaways: Over 12 crypto entities compromised within weeks after Drift Protocol’s $280 million breach. Recent hacks include…

With No Bipartisan Leadership, CFTC Won’t ‘Slow Down’ on Rulemaking
Key Takeaways: Michael Selig, the sole commissioner of the CFTC, will proceed with rulemaking despite calls for bipartisan…
The financial tricks of the crypto giant Kraken
When proactive market makers start to take initiative
Tom Lee Says ‘Mini Crypto Winter’ Is Over, Sees Ether Above $60K
Key Takeaways: Tom Lee predicts Ether’s resurgence, projecting it to surpass $60,000 in the coming years. Bitmine suffered…
French Government Tackles Rising Crypto Safety Concerns
Key Takeaways: France is intensifying measures to counter the surge in crypto kidnappings and wrench attacks. Since early…
Europe’s Bitcoin Treasury Playbook Unlikely to Mirror US Strategy: PBW 2026
Key Takeaways: European firms are adapting unique Bitcoin treasury strategies due to distinct financial regulations and market dynamics…
Circle Confronts Lawsuit Over $280M Drift Protocol Hack
Key Takeaways: Circle faces a lawsuit for allegedly aiding in the transfer of $230 million in stolen USDC.…

