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    3. A Bittensor Developer Exits After Dumping 37,000 TAO Cryptos: Governance Crisis in Full Swing?

    A Bittensor Developer Exits After Dumping 37,000 TAO Cryptos: Governance Crisis in Full Swing?

    By: crypto insight|2026/04/15 16:00:10
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    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.

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    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.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

    Governance Crisis Hits Bittensor Following TAO Dump
    Charting TAO’s Next Move: Recovery or Further Downturn?
    LiquidChain Enters the Fray Amid TAO’s Uncertainty
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