Discuss the causes and consequences of $TAO 's plunge and your future outlook

The main reason for TAO's sharp decline is that everyone is starting to doubt whether this sub-network gameplay can continue indefinitely; whether the company cooperating with Nvidia and the evaluation of TAO as a scam are secondary reasons.

Currently, the core concern in the market is: Does the TAO rule have vulnerabilities?

This time, it has been directly proven that even if a certain sub-network fails, it doesn't necessarily get immediately dealt with. Naturally, the market will think, will this happen again in the future? Once trust is loosened, valuation becomes hard to sustain, and the price naturally drops.

Additionally, TAO originally had some premium built on the expectation that certain high-quality sub-networks would be very strong. Now that this logic has been hit, it’s normal for the price to fall.

The fundamental issue with TAO at present is the incentive mechanism. If the reward design isn't strong enough, it won't retain users, and sub-networks may gradually lose participants—this is a long-term hidden risk.

But in the short term, since the price has already fallen, there's no need to be overly bearish.
First, it has already dropped, and many negative emotions have been released.
Second, the decline may attract new players to come in and compete for positions, leading to potential battles.
Third, this wave seems more like a mechanism problem rather than a project direction error.

Overall, the project's fundamentals are sound. TAO remains a project we can consider during the bear market to position ourselves for the next bull run. Also, just to mention, I believe my continuous tracking of TAO over this period has been quite excellent—calling the bottom when it was low, warning everyone about risks at high levels, and mentioning that there would be a second top above 350. A few days ago, it rebounded to 351 before crashing down now, so I’ve been consistent and transparent. Even then, some trolls criticize me, saying that whether it rises or falls, I have something to say. Is it so hard to admit that someone is good? Many people lose money in the bear market, and I understand they need to vent, but at least they should be decent—rather than attacking the air and spamming wildly every day.

Regarding TAO, I also explained everything in detail during yesterday’s live stream. You can go listen to the replay: live stream replay