Bittensor Experiences Significant Market Value Loss Following Covenant AI Departure

Bittensor's market value dropped by nearly $900 million after Covenant AI announced its departure from the network. According to NS3.AI, CryptoSlate data revealed that TAO, Bittensor's native token, fell 27% from $338 to $285 within approximately two hours before slightly recovering to $294. CoinGlass data indicated that the event led to $11 million in long liquidations. The split has highlighted a governance dispute between Covenant AI founder Sam Dare and Bittensor co-founder Jacob Steeves.