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TAO Token of Bittensor Tumbles by 20% Post Governance Conflict Triggers Sell-Off in Market

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Crypto Breaking News

Key Insights

  • The TAO token of Bittensor falls over 20% post-exit of Covenant AI, citing governance issues.
  • Fears of centralization impact the sentiment of the crypto market negatively.
  • Currently, TAO is testing the $250-$263 support level, which requires a recovery above $280.

Price Plunge for TAO Due to Governance Issues

The native coin of Bittensor named TAO fell dramatically by more than 20% to reach approximately $273. This dramatic price plunge came as a rude shock to many traders after witnessing steady gains by the token.

The reason behind this selloff could be the unexpected departure of Covenant AI from the Bittensor network. Although departures happen all the time in blockchain projects, the reason why this departure became noteworthy was due to the substantial reputation that Covenant AI holds in the ecosystem.

Changes in Market Sentiment Happen Quickly

The news about Covenant AI being accused spread quickly throughout cryptocurrency circles, leading to a swift change in market sentiments. Investors who used to consider Bittensor a potential decentralized AI platform started rethinking the possible dangers related to governance transparency and sustainability in the long run.

Apart from damaging the reputation of the project, the departure of Covenant AI also led to negative changes in terms of finances. The organization is said to have liquidated a significant number of TAOs, putting additional pressure on the already falling price of the asset. Moreover, as soon as traders saw how Covenant AI sold its tokens, they rushed to do the same to avoid losses.

Thus, the market sentiment worsened quickly. The governance mechanism of Bittensor was accused of centralization and failing to distribute governance among many members of the network.

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Liquidity Puts Downward Pressure on TAO Price

This led to massive selling by leveraged investors whose trades depended on further increases in the price. Their exits accelerated the downward trend. In other words, forced liquidations added further pressure on the TAO price as new sell orders entered the market after the positions were liquidated.

In addition, breaking below $300 was particularly important as it showed how strong bullish sentiment had been before the breakdown. Notably, just a few days earlier, the price was above $340.

Critical Support Zone Comes Into Focus

TAO is now attempting to stabilize in the mid-$260 range, an area that aligns with previous support levels and technical retracements. The immediate support zone between $250 and $263 has become crucial for short-term price action.

If this range holds, the market could enter a consolidation phase, allowing buyers to regain confidence and potentially rebuild momentum. A move back above $280 would be an early signal of recovery and renewed bullish interest.

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However, risks remain elevated. If TAO fails to maintain support above $250, the next downside target could emerge around $233. This scenario would likely confirm continued bearish pressure and prolonged uncertainty.

Prognosis Is Still Unclear

Recent developments in relation to Bittensor show how the issue of governance can affect investor sentiment and confidence, particularly within decentralized networks.

Although the project may still have good prospects for success within the realm of AI-blockchain applications, investor sentiment currently remains highly volatile.

In the meantime, investors will be paying close attention to how the price develops, along with any progress within the network itself. The position taken by the Bittensor development team regarding any governance problems may become critical in determining future moves.

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For the moment, however, caution appears to prevail.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

SEC Approves Elimination of Pattern Day Trader Rule and $25,000 Minimum: FINRA

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SEC Approves Elimination of Pattern Day Trader Rule and $25,000 Minimum: FINRA

The SEC granted accelerated approval to FINRA’s rule change eliminating the Pattern Day Trader designation and its $25,000 minimum equity requirement for day traders.

The U.S. Securities and Exchange Commission on Tuesday approved FINRA’s proposed rule change eliminating the Pattern Day Trader designation, the $25,000 minimum equity requirement, and all related day-trading buying power provisions under FINRA Rule 4210. The accelerated approval removes longstanding restrictions that have governed retail day trading for decades.

The SEC simultaneously approved new intraday margin standards requiring broker-dealers to monitor and address real-time risk exposure in customer margin accounts. The regulatory shift represents a substantial change to day-trading accessibility and compliance frameworks for retail investors in U.S. equity markets.

Sources: WatcherGuru | WatcherGuru

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This article was generated automatically by The Defiant’s AI news system from publicly available sources.

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Global recession inevitable if Strait of Hormuz stays shut

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Global recession inevitable if Strait of Hormuz stays shut

Ken Griffin, chief executive officer of Citadel Advisors LLC, at the Semafor World Economy Summit during the International Monetary Fund (IMF) and World Bank Spring meetings in Washington, DC, US, on Tuesday, April 14, 2026.

Aaron Schwartz | Bloomberg | Getty Images

Citadel CEO Ken Griffin said Tuesday that the global economy is headed toward a recession if the Strait of Hormuz stays shut for much longer.

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“Let’s assume [the strait is] shut down for the next six to 12 months — the world’s going to end up in a recession,” Griffin said on stage at the Semafor World Economy conference in Washington, D.C. “There’s no way to avoid that.”

As a result, the world is going to see a massive shift toward alternative fuel sources, including wind, solar and nuclear, he added. To be sure, the hedge fund leader thinks the consequences of the war would have been worse if the U.S. delayed any strikes until Iran’s military capabilities had grown.

Stocks have managed to rebound back to where they were before the U.S. first attacked Iran in February, but the optimistic sentiment among investors is contingent on the duration of the war in the Middle East. Many expect risks of an escalation in tensions between the two countries are not at all priced into the market.

Global economies especially in Asia remain vulnerable to spikes in oil prices, which remain elevated at around $100 a barrel. That’s off their highs during the conflict, but remain far above where they were before the war, at just below $70 a barrel.

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Paxos Labs Raises $12M to Launch Crypto Yield and Lending Platform

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Paxos Labs Raises $12M to Launch Crypto Yield and Lending Platform

Paxos Labs has raised $12 million in a strategic funding round led by Blockchain Capital to expand its Amplify platform, a suite of tools that lets companies offer crypto yield, lending and stablecoin issuance through a single integration.

The Amplify suite includes three modules — Earn, Borrow and Mint — allowing platforms to generate yield on digital assets, enable crypto-backed loans and issue branded stablecoins with a single integration designed to unlock additional features over time.

According to Tuesday’s announcement, the platform provides a single SDK with configurable controls, while Paxos Labs manages liquidity, counterparty vetting and backend operations, and shares a portion of generated revenue with integrating partners.

The company said partners including Aleo, Hyperbeat and Toku are already using the platform, with Hyperbeat reporting more than $510,000 in assets under management since launching on April 9. The raise also included participation from Robot Ventures, Maelstrom and Uniswap.

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