Bittensor (TAO) It is facing the biggest challenge to date. During a remarkable 12-hour window, a TAO price has fallen by 27%delete approx $900 million from its total market capitalization.
The sale was triggered by the sudden departure of The AI Agreementone of the biggest contributors on the internet. This exodus was not quiet; The group accompanied their resignation with a harsh criticism of the leadership of the protocol, accusing the leadership of remaining a “decentralized theater” while exercising full power.
Has TAO’s Price Been Damaged?
By April 10, 2026, a Bittensor ($TAO) price is at $263which represents a 24-hour decrease of approximately 19%. This instability has led to extinction $9 million in TAO long positions are liquidatedwhen the market reported that the AI Alliance had downloaded 37,000 TAO tokens, worth more than $10 million.
Who is Bittensor and who is the AI Alliance?
Ask for a sor is a machine learning system that allows different “subnets” to compete and provide AI services in exchange for TAO rewards. The AI Agreement he was the developer behind many successful subnets, including Subnet 3 (Templar), which recently created topics for training major AI models on embedded devices.
Why the Covenant AI Abandoned the Ship
The chaos started when Sam Darethe founder of the AI Alliance, published an open letter announcing the immediate removal of three of their subnets: Templar, Basilica, and Grail. The decision comes after months of controversy over how the network is run.
According to his statement, the AI Agreement states:
- Centralized Control: The inventor of Bittensor, Jacob Steeves (known as “Const”), claims to have a unique ability to control emissions.
- Financial Damages: The group claims that their output (award) was suspended as a punitive measure for privacy disputes.
- Market Disruption: Criticisms surfaced that the main group used their main tokens to take advantage of the market downturn in the negotiations.
Market Effects and Settlement
The exit of such a key player creates a lack of confidence. According to data from CoinMarketCap priceTAO fell from its weekly high near $337 to a low of $263. This move took many traders by surprise.
- All Prohibited: ~$9.2 million (mostly long term).
- Market Loss: ~$880 million in 12 hours.
- Subnet Performance: Related subnet tokens fell by 55% following the news.
Should You Sell TAO Coin?
Although the main AI crypto sector has been growing since the beginning of 2026, Bittensor’s internal governance problems caused “disruption”. While competitors are selling out of necessity and growth, TAO is also selling out reputational risk.
Investors are now questioning the “Triple Multi-sig” mandate that Bittensor has been fighting for. If one of the main subnet operators can be pressured by the administration, the “decentralized” token becomes difficult to defend.
| Metric | Price (Before Crash) | Price (Currently) | Change it |
|---|---|---|---|
| The value of TAO | $337 | $263 | -21.9% |
| Market Cap | ~$3.1 billion | ~$2.2 billion | $900M |
| A long resolution | N/A | $9 million | Spike |
The way forward for Bittensor depends on two things:
- Founder’s Answer: Whether the Bittensor Foundation can provide concrete evidence to refute the middleman’s claims.
- Subnet Migration: Either other developers follow the lead of the Covenant AI or stay to fill the gap left by the Templar subnet.
