According to the latest data, Covenant AI (the team behind Subnet 3 – Templar) has officially announced its departure from Bittensor. The move triggered an immediate and brutal sell-off across almost every subnet token.
Looking at the current market snapshot:
- $TAO itself dropped 18.3% in 24h, now trading at $264.
- SN64: -21.3%
- SN4: -27.6%
- SN3 (the one that left): -57.2%
- Many other subnets (SN51, SN8, SN44, SN62…) are down 18–28% in a single day.
Community sources report that the Covenant AI team accused the $TAO founder of exerting excessive control over the ecosystem, especially during periods of operational conflict. Even more concerning, Covenant’s founder Sam reportedly sold approximately $10 million worth of $TAO right before the exit.
Bittensor currently has 128 subnets in total. If one subnet’s departure can already cause this level of panic and price destruction, it raises a big question: what would happen if more subnets start leaving?
This event highlights a key vulnerability in decentralized AI networks: subnet dependency and founder influence can create massive systemic risk. When a major contributor exits with a large bag, the whole ecosystem feels the pain almost instantly.
Lesson for ONFA community: Even in hot narratives like decentralized AI, always watch team actions, token unlocks, and on-chain flows. A single high-profile exit can wipe out weeks of gains in hours. Stay safe and always #DYOR!
