#TAO TAO coin manipulators continue to unload: a series of cuts under the AI hype, retail investors are being boiled like frogs in warm water

With the halo of “decentralized AI computing network,” TAO is playing out a multi-month, step-by-step large-scale dump orchestrated by the manipulators. From violent price pumps creating FOMO, to high-level oscillations quietly distributing tokens, and now continuous sell-offs to harvest profits, the manipulators have already laid a trap. Retail investors chasing the high are gradually getting deeply trapped, losing everything.

1. Highly concentrated chips, manipulators hold all the power

TAO’s control mechanism was doomed from the start as a manipulative game:

• Extremely scarce circulating supply: Over 85% of tokens are staked across the network, with less than 15% truly circulating. Early teams, VCs, and core validation nodes hold over 60% of the chips, fully controlling the price trend.

• Staking mechanism as a channel for dumping: The no-lock staking design allows manipulators to unlock and sell at will. The so-called “decentralization” is just a cover for control.

• On-chain data confirms escape: After dTAO launched, **300,000 TAO tokens (about $70 million)** escaped from the root network staking pool, continuously sold on exchanges, rapidly draining liquidity.

2. Classic harvesting script: from诱多 to continuous dumping, a tightly linked process

TAO’s price movement perfectly replicates the typical “pump→诱多→oscillation distribution→持续砸盘” process used to fleece retail investors:

1. Violent pump, creating a false impression of sudden wealth
Manipulators hype the AI concept, rallying communities and media to shout “AI sector leader” and “next hundred-bagger.” They violently pump with small funds, causing the price to surge over 50% in a short time, breaking key resistance levels, triggering quant follow-trades and FOMO among retail investors, attracting large amounts of high-level buy-in.

2. High-level oscillation, quietly distributing chips
After reaching a high, manipulators stop aggressive pumping and maintain narrow fluctuations, creating the illusion of “high-level consolidation, about to rise again.” During this period, they amplify trading volume through wash trading, misleading retail investors into thinking buying momentum is strong, prompting them to buy the dip. Meanwhile, manipulators sell gradually, quietly distributing chips to the new bagholders.

3.持续砸盘, a frog in boiling water style harvest
After distributing over half the chips, manipulators stop hiding and begin continuous selling:

• Slow price decline, dropping 3%-5% daily, breaking support levels one after another, making retail investors believe in a rebound and reluctant to sell.

• Occasional small rebounds, creating a false “bottoming out and rebounding” illusion, attracting bottom-fishing funds, while manipulators continue to sell.

• When retail investors realize the situation, the price has plummeted 30%-50% from the high, deeply trapped, unable to sell.

3. Panic spreads: data reveals the harvesting truth

• Continuous decline: TAO keeps falling from the high, moving averages are bearish, rebounds are weak, confirming a downtrend. RSI weakens continuously, selling pressure dominates the market.

• Liquidity dries up: 24-hour trading volume shrinks persistently, buy orders are almost zero. Bagholders’ orders at high levels cannot be filled, only watching their assets shrink.

• Margin calls surge: leveraged traders are hit hardest, with longs constantly liquidated. Manipulators coordinate with the futures market, triggering stop-losses to precisely harvest retail margin.

• Community sentiment collapses: from frenzy to despair, “buying the dip halfway up” and “deeply trapped” become normal. Retail investors panic-sell, creating a vicious cycle of “selling more as prices fall, prices fall more as they sell.”

4. AI bubble bursts, fundamentals worthless

TAO’s touted distributed AI computing network has no real commercial application:

• Confirmed external annual revenue across the network is only $3 million to $15 million, while a single subnet’s annual subsidies exceed $50 million, entirely sustained by token subsidies.

• Out of more than 120 subnets, only 1-2 generate small revenues; the rest have no external income, relying solely on hype to maintain market cap.

• The so-called “AI empowerment” is just a pie-in-the-sky tool to attract retail investors; fundamentals cannot support the current valuation.

5. Advice to retail investors: stop dreaming of rebounds, cut losses and exit promptly

1. Recognize the manipulative nature: TAO is a heavily controlled pump-and-dump coin, with all rises and falls dictated by manipulators. Any so-called “value investing” is a scam.

2. Reject bottom-fishing fantasies: continuous decline isn’t “shakeout,” but a dump by manipulators. There’s no bottom, only lower lows. Buying the dip will only deepen the trap.

3. Cut losses decisively: don’t hold on to hope. Cutting losses early is the only way out. Preserve your capital, stay away from manipulative coins—that’s the survival strategy.

4. Stay away from hype concepts: beware of “AI,” “metaverse,” and other hot-packaged manipulative coins. Without solid fundamentals, sudden surges are traps for harvesting.

The ongoing dump of TAO tokens exemplifies typical market manipulation in the crypto space. In this market full of greed and traps, only by staying rational and cautious of risks can you avoid becoming a victim of the manipulators’ scythe.