Is today's increase in "TAO On-Chain Meme" a "dead cat bounce" or a signal of rise?
Written by: BlockBeats Worker
On April 11, according to the official announcement, Binance will launch Bittensor (TAO) at 20:00 (ET on April 11, 2024), and open spot trading pairs such as TAO/BTC and TAO/USDT. After the announcement, Bittensor's native token TAO rose rapidly. The price of this "AI leader" with a market value of over $4 billion suddenly rose to around $700, an increase of more than 20% in 1 hour.
Driven by the news of the launch and the increase in the price of TAO tokens, a number of tokens related to the "TAO ecosystem" have experienced a sharp rise in a short period of time. For example, Rivus DAO, a TAO ecosystem liquidity project that just completed LBP at FjordFoundry two days ago, gained more than 40% in 1 hour, reaching around $0.1.
According to the official introduction, Rivus DAO aims to unlock DeFi on AI protocols/ecosystems by providing LSD services to AI blockchains such as Bittensor. Rivus DAO provides a liquid mortgage solution using rsToken, allowing users to receive staking rewards while staying on DeFi native networks such as Ethereum. Recently, RIVUS has also been on the list of popular Ethereum tokens on Dexscreener.
In addition to Rivus DAO, other projects that focus on "bringing liquidity to the TAO ecosystem" such as the interest-free DeFi lending protocol Sturdy Finance also experienced price fluctuations. After the news was announced, STRDY gained 20% in 1 hour. In early March, Sturdy just announced the launch of the TAO subnet, but the price has been "sluggish" since then.
In March 2022, Sturdy announced the completion of a $3.9 million seed and strategic round of financing, led by Pantera Capital, with participation from Y Combinator, SoftBank Opportunity Fund, KuCoin Ventures, and Orange DAO. However, in June 2023, Sturdy was hacked and lost 442 ETH. In the new round of crypto cycle, Sturdy seems determined to cling to TAO to revive its development morale.
Compared with Rivus DAO and Sturdy Finance, TAOPad (TPAD) seems to have become the target of fierce shill from a number of KOLs. This launch platform, which also focuses on "TAO ecological liquidity", has previously helped another TAO ecological project TAOBank (TBANK) successfully issue tokens. Both of them gained quite a good increase in the early stage of "AI On-Chain meme" hype, but TAO prices began to show a downward trend in mid-last month and then fell rapidly.
BlockBeats previously reported that due to Bittensor's huge market value and the closed nature of the ecosystem, people wanted to participate in the speculation of the ecosystem, but they had no way to do so, which led to the frequent appearance of various "TAO On-Chain meme" projects under the TAO brand in the market. These projects were still operating slightly in the early days, such as TAOBank (TBANK), TAO Accounting System (TAS), etc., but with the continuous influx of wealth creation and hot money, the emergence of TAO On-Chain meme has become faster and faster, and the quality of Official Twitter operations has become worse and worse. In the end, most of the TAO On-Chain meme were harvested and left after the zero ending, leaving only the participants disappointed with the TAO ecosystem.
In fact, the meme tokens of Solana ecosystem also experienced a period of lows like TAO, but they regained popularity after Binance launched WIF, and created the myths of BOME and Slerf in the following month. Can Binance's launch of TAO make the Bittensor ecosystem hot again? Is the increase of "TAO on-chain meme" today a "dead cat bounce" or a signal of rise?
