The TAO price dropped 20% today and now trades around $260. The token touched a high of $341 just days ago. That means a $81 collapse in a single session.
All the positive momentum from Q1’s $43 million revenue and the Grayscale ETF filing got nuked. One reason: the largest subnet on Bittensor just got rugged. Covenant AI, the team behind TAO’s biggest moment, is leaving the network.
What Happened With Bittensor?
Covenant AI built Covenant‑72B – 72 billion parameters, 70+ nodes, no data center, no $100 million. The model matched Llama 2 70B. Jensen Huang endorsed it. The TAO price rallied 100% in March on the back of that work.
Now Covenant AI accuses the Bittensor founder of:
- Suspending their emissions
- Stripping moderation rights
- Deprecating their infrastructure
- Timing token dumps as pressure
They call governance “decentralization theatre.” The biggest builder became the biggest critic. No rebuttal from Bittensor yet. Nobody has answered the accusations.
🚨 BIG drama on $TAO right now.
— Chain INK (@0xchainink) April 10, 2026
Covenant AI is leaving Bittensor.
> They built Covenant-72B.
> 72B params. 70+ nodes.
> No data center. No $100M.
> Matched Llama 2 70B.
Jensen Huang endorsed it.
TAO rallied 90% in March.
Now they're accusing the founder of:
• Suspending… pic.twitter.com/SrsxRfxrCc
Opinion and Short‑Term TAO Price Forecast
This is not a normal market dip. A core builder leaving and publicly calling the project a lie destroys trust faster than any price chart. Even if the accusations turn out half true, the damage is done. Investors who bought the Grayscale narrative now face a governance crisis. The subnet that gave TAO real AI credibility is gone. Replacing that reputation takes months, not days.
Short‑term TAO price forecast: expect more downside before any stabilization.
- Immediate support: $230 – $240 (pre‑rally levels from February)
- Next support: $200 (psychological round number)
- Resistance to reclaim: $300 (broken level from today’s drop)
If Bittensor issues a credible rebuttal within 48 hours, TAO could bounce to $280‑$290. Without a response, selling pressure continues toward $200. The $43M revenue and ETF filing do not matter when the community believes the founder sabotaged its top builder.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
