As of January 21, 2026, the major negative news for the COAI token is concentrated on four core risks: governance centralization, open-source infringement, stablecoin de-pegging, and unlocking sell pressure, compounded by the crash and ongoing sell pressure from late 2025 to early 2026.

1. Core Negative Highlights (ranked by impact)

1. High token concentration + whale control: The top 10 wallets control 87.9%, and the top 100 wallets control 99.74% of the supply, which can easily trigger large sell-offs; the contract is an agency contract and ownership has not been relinquished, posing a centralized manipulation risk.
2. Open-source protocol infringement controversy: NoFx accuses COAI of copying its AGPL-licensed AI trading system; the project team has not publicly responded, facing legal and reputational dual blows, leading to developer trust loss and ecosystem expansion hindrance.
3. Ecosystem algorithm stablecoin de-pegging: By the end of 2025, xUSD and deUSD de-pegged, causing panic selling, accelerating COAI's collapse, and exposing technical and risk control flaws.
4. Large token unlock sell pressure: Only 19.65% (about 188 million tokens) are in circulation; future large unlocks with insufficient demand will continue to suppress prices; a 25.22% decline over 30 days indicates weak market absorption.
5. Aftermath of the 2025 crash: From October peak, plummeted 88%-96%, market cap evaporated over $117 million, market confidence is low, liquidity has shrunk, and trading activity continues to weaken.
6. Regulatory and compliance risks: Stricter AI + DeFi regulation, lack of transparency in governance and technology, raise compliance concerns, restrict institutional capital inflow, and exacerbate volatility.

2. Key Timeline (October 2025—January 2026)

- October 2025: Price peaks followed by significant volatility, exposure of concentration issues, and rising unlock expectations.
- November—December 2025: NoFx initiates infringement accusations; xUSD and deUSD de-pegged, COAI collapsed, with a decline exceeding 90%.
- January 2026: Negative sentiment continues to ferment, prices fluctuate at low levels, and the market remains bearish on unlock and compliance risks.

3. Trading and Risk Control Tips

- Short-term: Avoid or take very small positions for trial, wait for clear signals such as unlock pressure release, infringement dispute resolution, and stablecoin mechanism repair.
- Medium-term: Focus on four key indicators—token distribution, unlock progress, legal developments, and stablecoin re-pegging; deterioration in any may trigger a new round of decline.
- Risk points: Whale sell-offs, unlock sell pressure, legal litigation, liquidity exhaustion—all are high-probability tail risks currently.