Fetch AI is now burdened with 600M extra FET tokens converted from OCEAN.
Ocean Protocol is withdrawing from the Superintelligence Alliance, stopping all OCEAN conversions to FET tokens. Fetch.AI claimed the change in partnership will not materially change the work of the AI project.
Ocean Protocol announced it is withdrawing from the Superintelligence Alliance, with a plan to re-market its OCEAN token and list it again. Fetch.AI stated the changes will not materially affect the market, though the price of FET tokens took another downturn after the news.
The Artificial Superintelligence Alliance was announced during one of the peak periods for AI infrastructure projects. The platform tried to unite Fetch, SingularityNET, Ocean Protocol, and Cudos.
Ocean Protocol to continue with independent development
Ocean Protocol Foundation announced its withdrawal of all designated directors in ASI Alliance and has resigned from the Superintelligence Alliance Ltd., a company based in Singapore.
Ocean Protocol announced it had secured funding for independent activity. Some of the profits from Ocean technologies will be used to buy back OCEAN tokens. To date, 81% of the supply of OCEAN has been converted to FET. All holders can choose which token to hold, and some can still convert to FET. Around 37,334 holders still have the old token, holding a total of 270M OCEAN.
The OCEAN token may be re-listed on exchanges if it has been removed. The token is still active on Coinbase, Kraken, Upbit, Binance US, Uniswap and SushiSwap.
Following the news, OCEAN tokens expanded by over 20% within hours, rising to $0.29. The new diminished supply of OCEAN and the chance at renewed marketing are boosting the token after months of sliding.
FET drops to a new low
Following the announcement, FET tokens slid toward a new low, extending their overall trend. FET fell to $0.51, erasing another 6.9% for the past day. Fetch still claimed that the withdrawal of Ocean will not affect the technology, operations, or the general goals of the ecosystem.
However, the ASI Alliance project was now left with diluted tokens, much to the displeasure of the community. There are still no explanations on the expanded FET supply from converting OCEAN. The community has suggested buybacks, token burns, or another incentive to boost the price of FET.
For now, some of the FET are still held by Ocean Protocol supporters. The community also suggested burning some of the ASI Alliance reserves. Currently, FET is weighed down by around 600M additional tokens.
Community reactions vary, from greeting the new independence of Ocean Protocol to calling the project a Trojan horse that set up ASI Alliance for failure.
The projects were also struggling with the AI infrastructure narrative, while the market rewarded AI agent projects with more prominence and higher liquidity. The project belongs to the DePIN, or decentralized infrastructure subset of tokens, which were generally pressured.
Overall, DePIN space is down to $17B in total valuation, due to lower mindshare. Ocean Protocol turned into the top trending DePIN project for the past day.
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