Bittensor's native token, TAO, jumped 30% in value Monday after Anthropic, the artificial intelligence company, suspended one of its AI models. The move sent traders scrambling for the cryptocurrency, which is linked to a decentralized machine-learning network.
The rally and the suspension
TAO climbed from around $420 to nearly $550 in a matter of hours, according to market data. The spike followed news that Anthropic had paused operations on an unspecified model. Neither company has publicly explained the suspension, though speculation on social media tied it to safety or regulatory concerns.
Bittensor’s token is designed to incentivize participants in its peer-to-peer AI training platform. Anthropic, known for its work on safe AI systems, did not say when the model might be reinstated.
Market reaction
Kraken, Binance and other major exchanges saw trading volumes on TAO surge past $200 million in the 24 hours after the announcement. The token’s rally outpaced most other cryptocurrencies, which were relatively flat during the same period.
Investors appeared to interpret Anthropic’s suspension as a potential shift in competitive dynamics, though no direct link between the two companies has been confirmed.
What happens next
Anthropic has not released a new timeline for the model’s return. Bittensor’s price remains volatile, and traders are watching for further updates from either side. The suspension leaves open the question of whether regulatory pressure or internal testing prompted the halt.
