The decentralized finance (DeFi) ecosystem has been rocked by the departure of Covenant AI from the Bittensor project. The sudden loss of a key player has sent shockwaves through the community, causing a steep decline in the value of TAO tokens.
In just 24 hours, the price of TAO plummeted from $337 to $270, a drop of nearly 20%. This drastic fall was precipitated by Covenant AI's exit, which was accompanied by revelations about governance concerns and warnings that control may be shifting away from users.