Bitcoin treasury firm Nakamoto is seeking shareholder approval for a reverse 
stock split to meet Nasdaq listing requirements. The move follows a steep 
share price decline and mounting pressure on its business model. Key Takeaways 
Nakamoto stock currently trades at $0.21, as the company seeks a reverse stock 
split before June 8 to meet the […]

David Bailey’s Nakamoto Eyes Reverse Stock Split to Avoid Nasdaq Delisting

Subnet developer Covenant AI announced its exit from Bittensor due to 
decentralization concerns and alleged punitive actions by the AI-focused 
network ecosystem co-founder, Jacob Steeves. Related Reading: Solana Price At 
Risk As Key Pattern Emerges – Is $52 The Next Stop? Covenant AI Slams 
Bittensor’s Decentralization On Friday, Covenant AI’s founder, Sam Dare, 
released a statement announcing the subnet developer’s departure from 
decentralized artificial intelligence network Bittensor, citing governance 
disputes and decentralization concerns. “We cannot in good conscience continue 
to build on a network where the foundational claim we make to our investors, 
that this infrastructure is decentralized and permissionless, is contradicted 
by the reality of how the network is actually governed,” Dare wrote, calling 
Bittensor a “decentralized theater.” For context, Covenant AI was one of 
Bittensor’s most prominent contributors, operating three subnets: Templar 
(SN3), Basilica (SN39), and Grail (SN81). As reported by NewsBTC, the team’s 
Covenant-72B model, which was acknowledged by NVIDIA’s CEO and cited by 
Anthropic’s co-founder, recently triggered a significant rally for TAO’s 
price. In the statement, Covenant AI’s founder argued that Bittensor’s alleged 
decentralization problem “runs deeper than any single incident,” affirming 
that the network actually has “centralized control with decentralized 
branding.” He claimed that Bittensor’s founder, Jacob Steeves, also known as 
Const, maintains effective control over the triumvirate structure the network 
operates on, “resists any meaningful transfer of authority, and deploys 
changes unilaterally whenever he chooses, without process and without 
consensus.” In addition, Dare alleged that Steeves took a series of actions 
against Covenant AI&#8217;s operations over the past few weeks, including suspending 
emissions to its subnets, overriding moderation capabilities over its 
community channels, publicly deprecating the subnet infrastructure, and 
applying “direct economic pressure” through strategically timed token sales. 
Bittensor Founder, Community Push Back Steeves quickly responded to the 
allegations, denying Dare’s claims in an X post. First, the Bittensor founder 
addressed the suspending emissions argument, affirming that he doesn’t have 
that ability but sold some of his alpha holdings on the three subnets, as 
“they were not running, and were on near 100% burn code.” “This changed the 
emission in the same way all buys and sells on Bittensor do. I don’t have any 
privilege beyond what normal TAO holders have,” he stated. Regarding the 
deprecation and removal of moderation rights, Steeves argued that Dare 
“specifically deprecated his own channels,” particularly the Discord channel, 
and repeatedly deleted posts of “genuine, honest criticism.” As a result, he 
claims to have “removed that ability temporarily and then reinstated it 
later,” but did not remove his moderator role. “I simply stopped him from 
deleting posts from others in his channels.” Alex DRocks, a Bittensor 
community member and participant of the Discord channels, backed some of 
Steeves’ counterclaims. “I saw the legit post deletions in real-time and also 
the bittensor discord channels being deprecated by Sam (Covenant owner) too. 
Everything Const said above checks out,” he wrote in an X thread. “The deleted 
posts were critiques about sn39 redoing exactly what another compute subnet is 
doing while they had shilled about innovating and doing better than others. 
(…) What this proves is that Sam Dare couldn&#8217;t handle a simple question 
without deleting the messages,” DRocks continued. Lastly, Steeves denied 
making “large visible token sales” to apply economic pressure, affirming that 
he has sold less than 1% of what he had invested in Covenant AI’s teams. TAO 
Price Crashes After ‘Calculated Exit’ Amid the controversy, Bittensor saw its 
token, TAO, crash 25% from the $340 area to a multi-week low of $250 before 
bouncing toward the $260 level. Analyst Ardi noted that 24 hours before the 
Covenant AI’s news dropped, TAO’s sell volume hit its highest level since 
December 2024. Related Reading: Ethereum Reclaims $2,200, But Analyst Says 
It’s Not Time To Celebrate Yet – Here’s Why “If you think that’s a 
coincidence, you don’t understand the game you’re playing. This was a 
calculated exit and execution,” he stated, explaining that larger wallets that 
knew beforehand “were unloading into the breakout attempt yesterday, using 
that strength to nuke millions in size well before the headline hit the 
market.” Meanwhile, retail-sized wallets had to absorb the pressure, competing 
for an exit at 20% lower. The analyst pointed out that TAO was in an 
“accumulation continuation phase” following its recent breakout, but warned 
that “the chart is going to have a difficult time absorbing 18-month high sell 
volume when it’s right at a key support level.” Featured Image from 
Unsplash.com, Chart from TradingView.com

Bittensor (TAO) Crashes 20% Following Covenant AI’s Exit, ‘Decentralization Theater’ Claims

Bitwise added the ticker $BHYP and a 0.67% management fee in its latest 
filing, signaling a potential launch soon, according to Bloomberg&#8217;s senior ETF 
analyst.

Bitwise edges closer to Hyperliquid ETF launch with second amended filing

Technical and onchain indicators hint at a possible trend reversal in XRP 
price as traders watch to see if a key support level holds.

XRP price bottom signals emerge after the altcoin holds key support level

Ethereum is pushing toward $2,200. The macro environment is uncertain. And top 
analyst Darkfost has identified a signal in the derivatives market that has 
not appeared in nearly three years — emerging at precisely the moment the 
price is testing a level that matters. Related Reading: XRP Supply Is Thinning 
and Leverage Is Absent. Learn What Happens When One Of Those Changes The 
signal comes from the ETH Taker Buy Sell Ratio on Binance — a measure of 
whether buyers or sellers are dominating perpetual contract activity on the 
exchange that processes more than a third of all ETH open interest globally. 
After an extended period of seller dominance, the ratio has returned above 
1.0, with a monthly average of approximately 1.016, and has held there for 
several consecutive days. The last time this setup was observed was in 2023. 
That three-year gap is the detail that elevates the current reading from a 
routine metric improvement to a structural development. Derivatives markets 
are where conviction is expressed with leverage — where participants put real 
capital behind directional views with amplified consequences. When buyer 
dominance returns to that market after nearly three years of absence, it is 
not a technical footnote. It is a behavioral shift from the participants who 
feel the market most acutely. Darkfost&#8217;s assessment is measured: this is the 
early stage of a more constructive trend, not its confirmation. The macro 
environment has not been resolved. But the derivatives market has started 
moving in a direction it has not moved in three years — and that timing, 
against the $2,200 test, is not coincidental. 37% of All Ethereum Derivatives 
Flow Through Binance Darkfost&#8217;s first point of context is the one that gives 
the current reading its full structural weight. Binance accounts for over 37% 
of total ETH open interest globally — meaning more than a third of all 
leveraged ETH positioning in the world sits on a single venue. When the 
derivatives signal on Binance flips from seller-dominant to buyer-dominant, it 
is not a reading from a peripheral platform. It is a reading from the venue 
that processes the largest share of the market&#8217;s directional conviction. The 
mechanism the ratio measures is straightforward and worth stating precisely. 
The Taker Buy Sell Ratio tracks the relationship between market buy and sell 
volumes on perpetual contracts. Above 1.0, buyers are dominant — more capital 
is entering through market buy orders than market sell orders. Below 1.0, 
sellers control the flow. For nearly three years, the ratio held below 1.0 on 
Binance. It has now moved above it, with a monthly average of 1.016, and has 
sustained that level for several consecutive days. What makes the current 
shift specifically constructive — rather than simply positive — is how it is 
unfolding. There are no excessive spikes. No sudden, violent imbalances of the 
kind that typically precede liquidation cascades in derivatives markets. The 
ratio is climbing gradually, methodically, in a way that reflects genuine 
behavioral change rather than a temporary flush of short positions. Darkfost 
names this explicitly: gradual shifts in derivatives markets are structurally 
healthier than sharp ones. A slow return of buyer dominance builds a more 
durable foundation than a rapid one. The market is not overheating into the 
signal. It is growing into it — and that distinction, for Ethereum at $2,200, 
is the difference between a setup and a trap. Related Reading: Ethereum’s 
$2.1B Leverage Flush Was Not a Breakdown Signal: Here Is What It Actually Was 
Ethereum Tests Resistance as Recovery Structure Builds Ethereum is extending 
its recovery attempt, now pushing toward the $2,200–$2,250 region, a level 
that is beginning to define short-term resistance. The chart shows a clear 
shift in behavior following the February capitulation: instead of continued 
downside, ETH has formed a series of higher lows, indicating that buyers are 
gradually regaining control. This change is meaningful, but still incomplete. 
Price is interacting closely with the 50-day moving average (blue), which is 
flattening after a prolonged decline. That suggests momentum is stabilizing. 
However, ETH remains below the 100-day (green) and 200-day (red) moving 
averages, both trending downward, which keeps the broader structure bearish. 
Related Reading: Aave Breakdown Deepens With Supply Flooding Back To Binance. 
Learn What Triggered The Rush Volume dynamics support the recovery narrative, 
but cautiously. The spike during the sell-off marked forced liquidations, 
while the subsequent lower volume during the rebound suggests a controlled, 
less speculative move higher. The key level to watch is the $2,200–$2,400 
range. A clean break and consolidation above this zone would confirm a shift 
in market structure and open the path toward the 100-day average. Failure to 
break higher would reinforce this as another lower high within a broader 
downtrend. For now, Ethereum is transitioning — not trending — with early 
signs of strength, but no confirmation yet. Featured image from ChatGPT, chart 
from TradingView.com

Cryptocurrency price in MXN