AI News: Market Volatility, Bittensor Drama, and Malicious Router Discoveries

TL;DR:

• Bittensor (TAO) plummeted 18.6% following a massive network dispute and token sell-off.
• Covenant AI exited the Bittensor network, dumping $10 million in TAO tokens.
• Malicious LLM routers threaten crypto wallets, while AI platform Oh raised $7.5M.

Bitcoin's recent price action has been extremely volatile as of late, but the

remains at 44 (Neutral).

Following the breakdown in the ceasefire between Iran and the U.S., geopolitical uncertainty is noticeably tempering traders' hands across the board.

With that in mind, here’s how this macroeconomic tension has impacted the AI sector since our

.

AI Market Recap

The AI sector has been range-bound for the last month, with its market capitalization oscillating between $16 billion and $19 billion.

Currently, the sector is down 0.8% week-over-week (WoW). This is largely due to the decline of Bittensor (TAO), which suffered one of its worst seven-day drawdowns on record.

The TAO token shed 18.6% WoW, falling to as low as ~$254 amid a massive sell-off triggered by a dispute between the founder of Bittensor and the owner of several prominent subnets (more on this later).

In line with this, Bittensor subnets make up the majority of this week's worst performers, with