Covenant AI leaves Bittensor network, citing lack of true decentralization
Covenant AI, a significant participant in the Bittensor network, has exited the project and criticized it for having 'decentralization theatre' rather than real decentralization. This means the network claims to be decentralized but in practice may be controlled by a small group. Following the announcement, TAO (Bittensor's token) dropped 18 percent in value. Bittensor is a blockchain project designed to create a decentralized AI network. The exit of a major participant raises questions about whether the project delivers on its promises. This type of internal conflict can shake investor confidence in the project.
Why it matters
This shows that even blockchain projects claiming to be decentralized can face credibility problems. For beginners investing in crypto, this is a reminder that you need to look beyond a project's marketing claims and examine whether the actual structure matches the promises. When major participants leave citing these concerns, it's often a red flag.
