Anthropic’s AI Model Shutdown Fuels Bittensor Price Rally, TAO Gains 25%

Decentralized AI tokens are currently in focus as Anthropic’s shutdown of its newly released AI models has sparked concerns about centralized control. Amid this renewed interest, AI crypto tokens like Bittensor have emerged as one of the biggest beneficiaries. As a result, the TAO price has seen a remarkable hike of 25% this week.

Notably, the TAO price rally comes on the heels of the US government’s order to suspend access to AI company Anthropic’s Fable 5 and Mythos 5 models. As noted by Grayscale’s Research Head Zach Pandl, the case highlighted the “centralized control of frontier AI technology.” This prompted to look toward decentralized tokens like Bittensor that are not controlled by a single organization.

Bittensor price rises as decentralized AI tokens’ demand grows

The TAO token is currently experiencing a significant rally as the demand for decentralized AI tokens rise. The Bittensor price has grown by nearly 25% over the past week, currently trading at $268.9. Although the token has declined by a marginal 0.8% in the last 24 hours, the token is still able to maintain its positive momentum.

It is important to mention that the current Bittensor price surge is driven by a broader shift in investor sentiment. The recent suspension of Anthropic’s AI models has invoked concerns over the centralized control of AI projects. This has injected a positive sentiment into the decentralized AI space, with tokens like TAO rising.

In a blog post, Grayscale’s Head of Research, Zach Pandl, stated that the Anthropic news emphasizes the need for decentralized AI networks. He added the court’s move has forced investors to opt for open and permissionless projects like Bittensor.

Pandl also acknowledged Bittensor as “Bitcoin for AI.” He added: 

This narrative has significantly benefited the Bittensor price, with TAO becoming one of the leading decentralized AI tokens.

What led to the Anthropic AI model shutdown?

According to a recent Reuters report, the US officials cited potential risks associated with Anthropic’s AI modelss. They stated that advanced AI models could be used by foreign military or intelligence organizations. Thus, the government ordered the company to halt access to its Fable 5 and Mythos 5, citing national security concerns.

Following the government’s order, Anthropic announced the suspension on June 12. The restriction has been applied to foreign nationals, including even foreign employees working in the US.

However, Anthropic noted that the vulnerability in the AI models was small and limited. The team believes that it isn’t strong enough to justify shutting down the models completely. The statement read:

Is $420 the next target for TAO?

Amid the growing hype surrounding the TAO token, analysts like Ali Martinez foresee the potential bull run of the Bittensor price. In an X post, Martinez noted that the token is approaching the top of its descending channel. This is a technical pattern that has capped the TAO price for months.

The analyst added that a strong breakout above the critical resistance at $300 could mark the beginning of a larger uptrend. If the token manages to hold the $300 zone, the next resistance will be $350. Another breakout could finally send the Bittensor price to the next target at $420.