The TAO token from Bittensor dropped 30% within a few hours following accusations targeting a co-founder and the departure of a key figure in the project, triggering a rapid loss of confidence and heavy selling pressure across the market.
To summarize
• TAO plunged sharply after accusations targeting a co-founder.
• The departure of a key figure fueled a growing loss of investor confidence.
• The Bittensor project is now facing a credibility crisis.
A sudden drop that caught the market off guard
The decline was sharp and highly concentrated over a short period.
Within just a few hours, TAO lost nearly 30% of its value, with selling accelerating as the information spread.
We know this kind of move exists in crypto.
But here, the trigger was not purely technical. It was also tied to internal developments within the project itself.
On social media, the reaction was immediate.
The drop fueled fear, and fear fueled more selling, creating a classic feedback loop typical of these situations.
But what actually happened?
Internal accusations and the departure of a co-founder
At the center of the situation are several accusations targeting a Bittensor co-founder.
According to various sources, he may have used token sales in a context of pressure on certain participants within the network, particularly around governance dynamics.
These elements remain complex to interpret in detail.
But their impact is direct.
They affect the perceived integrity of the project, which is enough to trigger a market reaction.
At the same time, the departure of a co-founder has amplified the situation, sending an additional negative signal to investors.
In the crypto space, even decentralized projects remain closely tied to their founding figures.
When one of them exits during a moment of tension, doubt sets in immediately.
Also worth checking on Cryptonomic:
- More than half of cryptocurrencies are already dead
- Why is Vitalik Buterin selling all his Ethereum?
- Did the US government lose $40 million in Bitcoin?!
A crisis of confidence beyond the price
Beyond the token’s drop, it is the project’s credibility that is now at stake.
Bittensor was built on a strong promise: a decentralized artificial intelligence network where participants collaborate to create value.
But that promise rests on one key element.
Trust.
Right now, that trust is being weakened by the rapid succession of accusations, departures, and extreme volatility.
And until clear answers are provided, uncertainty becomes the dominant force shaping the market’s reaction.
So the real question is no longer just about the current drop.
It is about the project’s ability to restore confidence in the coming days.
Case to follow on Cryptonomic.
