Token Truce Seeks to Restore Confidence in AI and Crypto Partnerships

Bitget App

Trade smarter

Bitget

News

Markets

Token Truce Seeks to Restore Confidence in AI and Crypto Partnerships

Bitget-RWA2025/10/25 20:35

By:Bitget-RWA

- Fetch.ai and Ocean Protocol near resolution of 286M FET token dispute, with Fetch proposing return to avoid legal battles and Ocean signaling compliance if formal terms are met. - Dispute originated from ASI alliance collapse, involving alleged FET market manipulation via OCEAN token conversions, causing FET's 93% price drop to $0.26. - Recent collaborative talks include Fetch offering to cover legal costs for return, while Ocean demands formal agreements, sparking 3% FET price rebound but lingering exec

The prolonged conflict between Fetch.ai and Ocean Protocol regarding 286 million

FET

tokens—worth about $120 million—appears to be moving toward a resolution. Both sides have recently indicated a willingness to reach a settlement during community discussions, as reported by an

Ambcrypto report

. Fetch.ai has suggested returning the tokens to avoid litigation, while Ocean Protocol has stated it would cooperate if a formal proposal is presented. This could help ease concerns about excess token supply and bring more stability to FET’s price.

Token Truce Seeks to Restore Confidence in AI and Crypto Partnerships image 0

The dispute originated after the Artificial Superintelligence (ASI) alliance broke down in October 2024. The main issue centers on claims that Ocean Protocol swapped 661 million OCEAN tokens for FET and sent some of these to centralized exchanges such as Binance and GSR Markets, according to a

Lookonchain post

. Humayun Sheikh, CEO of Fetch.ai, accused Ocean Protocol of damaging the alliance’s trust, while Bruce Pon, Ocean Protocol’s founder, denied any wrongdoing and attributed the FET price drop to general market instability and liquidity problems, as detailed in a

Coinotag article

. Blockchain data from platforms like

Bubblemaps

confirmed the token swaps, intensifying suspicions of possible market manipulation. Further details on these on-chain transactions were covered in a

Coinotag piece

Since the ASI merger, FET’s value has plunged more than 93%, now trading near $0.26. Technical analysis shows the token is heavily oversold, with a Relative Strength Index (RSI) of 27, as reported by

Cointelegraph

. The sharp decline has been worsened by concerns over potential sell-offs, with the disputed 286 million FET tokens representing a major supply risk. Experts believe resolving the conflict could help restore investor trust, though questions remain about how the returned tokens would be managed, including possible lockup periods and treasury oversight.

Recent events have shifted the dynamic from confrontation to cooperation. During a public X Space session, Sheikh announced that Fetch.ai would withdraw all legal actions if Ocean Protocol returned the tokens, as reported in

a Coinotag report

, with further coverage noting that Fetch.ai even offered to pay legal fees to speed up the process, according to

another Coinotag article

. Ocean Protocol, through mediator GeoStaking, expressed willingness to comply but stressed the importance of a formal written agreement, as summarized in a

CoinEdition piece

. This conditional progress has led to cautious optimism, with FET rising over 3% after the announcement, though traders remain wary until more details are confirmed.

The final resolution depends on agreeing to terms that guarantee openness and prevent future conflicts. Analysts suggest that a structured return of tokens with vesting requirements could reduce selling pressure and help rebuild confidence in the AI-crypto sector. The outcome could also set a precedent for decentralized projects, highlighting the importance of strong governance in token partnerships.

If completed, the agreement could be a pivotal moment for both organizations. Fetch.ai hopes to shift its focus back to AI development, while Ocean Protocol aims to regain trust after its contentious departure from the ASI alliance. However, any delays or lack of clarity in the settlement could extend market uncertainty, with FET’s recovery hinging on ongoing transparency and strict adherence to the agreed terms.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Vitalik Buterin warns of off-chain risks despite blockchain's security advancements, emphasizing centralized vulnerabilities in cross-chain bridges and L2 solutions. - Solana's Anatoly Yakovenko criticizes Ethereum L2s' permissioned multisig systems for undermining decentralization, proposing ZK-based Solana-Ethereum interoperability. - Sovereign Labs' Cem Özer advocates for STF-level rollup designs to isolate bridge risks, enabling flexible yet secure multi-bridge ecosystems. - The debate highlights ten

Bitget-RWA•2025/10/26 07:32

Ethereum Updates: The Ongoing Bridge Debate—Balancing Centralized Authority and Decentralized Protection

Ethereum Updates: Positive Trends, Negative Outflows: Ethereum Approaches $4,700

- Ethereum forms a Wyckoff re-accumulation pattern near $4,000, with analysts projecting $8,000–$10,000 if momentum holds. - ETF outflows ($244M) and bearish on-chain signals (MVRV death cross) contrast with rising DeFi TVL ($85B) and institutional adoption efforts. - JPMorgan's Ethereum collateral program highlights growing institutional interest, while Bitcoin's $446M ETF inflows underscore macro-driven capital rotation. - Long-term forecasts target $10,000 by 2028, but short-term risks include $4,700 re

Bitget-RWA•2025/10/26 07:32

Ethereum Updates: Positive Trends, Negative Outflows: Ethereum Approaches $4,700

Oracle’s aggressive investment in AI could threaten its valuation, while Chainlink seeks to build trust with a blockchain system that aligns with Federal regulations.

- Oracle’s $38B debt funds AI data centers via Vantage, part of a $500B Stargate initiative with OpenAI. - High leverage (debt-to-equity 4.36) and liquidity risks (current ratio 0.62) raise valuation concerns despite strong earnings. - Chainlink’s Fed-compliant oracle networks aim to boost institutional blockchain adoption, with LINK price projections up to $46. - Oracle’s AI expansion faces execution risks, contrasting Chainlink’s regulatory alignment in blockchain solutions.

Bitget-RWA•2025/10/26 07:16

Melania Trump and Milei Reportedly Exploited as Tools in $57 Million Memecoin Fraud

- A $57M memecoin fraud lawsuit accuses Meteora founder Benjamin Chow of using Melania Trump and Javier Milei as "props" to manipulate token prices via fake endorsements. - The scheme allegedly created artificial demand through insider-controlled liquidity pools, causing tokens like $LIBRA and $MELANIA to surge then collapse, wiping out investor funds. - Plaintiffs seek triple damages under RICO laws, naming co-conspirators including Kelsier Ventures CEO Hayden Davis and Jupiter co-founder Ng Ming Yeow in

Bitget-RWA•2025/10/26 07:00