TaoWeave promised to hoard TAO forever, but paying the bills just forced another crypto treasury sell-off of 3,959 TAO

What happened

TaoWeave sold 3,959 TAO tokens from its treasury to cover operating expenses, despite previously promising to hold TAO forever, and said it will keep selling tokens as needed.

Confirmed

Global impact / market context

Selling treasury tokens reduces the amount of TAO the project controls, which can lower investor confidence in the token’s value and signals that the project may be facing cash‑flow pressure.

Analyst inference

Many crypto projects rely on token holdings as a source of cash that can be quickly turned into money; when they sell tokens to fund operations, it can push the price down and raise doubts about token‑backed business models.

Analyst inference

What to watch

1. The volume of future TAO sales from TaoWeave’s treasury, indicating how fast the project is using up its crypto assets. Analyst inference
2. Changes in TAO’s market price after each sale, showing how the market reacts to the added supply. Analyst inference
3. Any announcements of new funding sources or partnerships that could lessen the need for further token sales. Analyst inference

Affected assets

• TAO — Bittensor

Evidence

• cryptoslate.com