Fetch.ai Offers to Drop Claims for FET Token Return in Ocean Protocol Dispute

• Fetch.ai offers to drop all legal claims if Ocean Protocol returns 286 million FET tokens sold during the merger.

• Ocean Protocol denies misappropriation, with blockchain data showing token conversions worth $120 million.

• Despite the drop from $3.22 to $0.26, experts link it to market sentiment and liquidity issues, not the alliance withdrawal.

Discover the FET token price drop causes post-ASI merger and Fetch.ai-Ocean Protocol resolution efforts. Stay informed on crypto feuds impacting AI tokens. Read more now.

What Caused the FET Token Price Drop After the Artificial Superintelligence Alliance Merger?

The FET token price drop of over 93% since the March 2024 Artificial Superintelligence Alliance merger stems from broader market volatility and liquidity drains, not Ocean Protocol’s departure, according to its founder Bruce Pon. Fetch.ai CEO Humayun Sheikh emphasized community impacts from alleged token sales during the merger, proposing a simple resolution to return the assets and halt legal proceedings. This feud highlights tensions in AI-crypto integrations amid fluctuating prices.

How Is Fetch.ai Proposing to Resolve the Dispute with Ocean Protocol?

Fetch.ai has outlined a straightforward settlement: Ocean Protocol Foundation would return the 286 million FET tokens allegedly sold post-merger, in exchange for Fetch.ai canceling all pending legal claims and covering related costs. CEO Humayun Sheikh announced this during a public X Spaces discussion, stating, “The offer is simple: give my community back the tokens. I will drop every legal claim.” Validator node operator GeoStaking, which facilitated initial talks, confirmed Ocean Protocol’s willingness to proceed if formalized in writing, potentially as early as the following day. This approach aims to prevent a protracted lawsuit that could harm both parties’ reputations and finances in the competitive AI token space. Blockchain analysts note that such resolutions preserve project integrity without court involvement, drawing on past crypto disputes resolved amicably.

The FET token’s price fell by over 93% since the merger of the Artificial Superintelligence Alliance, a drop that is unrelated to Ocean Protocol’s actions, according to its founder.

The feud between Fetch.ai and Ocean Protocol Foundation may be drawing to a close as the two sides look to reach a middle ground without escalating into a full-blown legal battle.

On Thursday, Fetch.ai said it would cancel all pending legal claims against the Ocean Protocol Foundation if the latter returned the 286 million Fetch.ai (FET) tokens that were allegedly sold during their merger.

“They are expecting a legal proposal from us for the return of the tokens,” said Fetch.ai CEO Humayun Sheikh, during a Thursday X Spaces show, adding:

“You can have my letter tomorrow. The offer is simple: give my community back the tokens. I will drop every legal claim.”

Sheik also offered to cover the legal costs of the pending contract, which would lead to the recovery of the tokens.

Source: Fetch.ai

Ocean Protocol will agree to return the tokens if the offer is officially put on paper, said FET-based validator node GeoStaking, the protocol that helped broker the deal.

The formal offer could be put on paper as soon as Friday, said Sheikh during the X Spaces show.

The agreement would enable the two parties to resolve the misunderstandings without the need for a lengthy lawsuit, which could be detrimental to the reputation and finances of both parties.

The latest proposal came days after Sheikh offered a $250,000 reward for more information on the signatories of OceanDAO’s multisignature wallet and their connection to the Ocean Protocol Foundation.

Source: Humayun Sheikh

A multisignature or multisig wallet is a cryptocurrency wallet that requires multiple signatures to execute and process a transaction.

Ocean Protocol Faces Allegations of $120 Million Token Dump

Ocean Protocol withdrew from the Artificial Superintelligence Alliance on Oct. 9, with no mention of the token transfers.

Since the announcement of the Artificial Superintelligence Alliance (ASI) in March 2024, the FET token has fallen by over 93%, from a peak of $3.22 to about $0.26 at the time of writing.

Still, the price drop was not catalysed by Ocean Protocol leaving the ASI, according to Bruce Pon, the founder of Ocean Protocol. He wrote in a Thursday blog response:

“[The 93% drop] was due to the broader market sentiment and volatility, SingularityNet and Fetch’s draining of liquidity from the entire community by dumping upwards of $500 million worth of $FET tokens, a reckless TRNR deal that failed to anticipate crypto dropping more than 45% […]”

“Ocean decided that it could not in good conscience remain a part of the ASI Alliance,” added the founder, promising to publish a “claim-by-claim rebuttal” to all the recent allegations.

Despite Ocean Protocol denying the misappropriation allegations, blockchain data indicates that an Ocean Protocol-linked multisignature wallet converted about 661 million Ocean tokens into 286 million FET coins, worth around $120 million at the time, according to blockchain data platform Bubblemaps.

This included 160 million FET tokens transferred to Binance and 109 million transferred to GSR Markets.

Source: Bubblemaps

These transactions, tracked via on-chain analytics, underscore the complexities of token migrations in alliances, where multisig wallets ensure security but can fuel transparency concerns. Experts from platforms like Bubblemaps emphasize that such data provides verifiable insights into fund movements, aiding in dispute resolutions without speculation.

Frequently Asked Questions

What Is the Main Dispute Between Fetch.ai and Ocean Protocol?

The core issue revolves around the alleged sale of 286 million FET tokens by Ocean Protocol during the Artificial Superintelligence Alliance merger, valued at $120 million. Fetch.ai claims this harmed the community, while Ocean Protocol attributes the FET token price drop to market-wide factors like liquidity dumps exceeding $500 million by other alliance members.

Will the FET Token Recover After This Feud Resolution?

Recovery depends on market conditions and alliance stability, but resolving the dispute could restore investor confidence in FET. With the token at $0.26 after a 93% decline, positive outcomes like token returns may mitigate further drops, though broader crypto volatility remains a key influence, as noted in recent analyses.

Key Takeaways

• Token Return Proposal: Fetch.ai’s offer to drop claims for the return of 286 million FET tokens could end the feud swiftly, preserving resources for both projects.
• Market Impact Clarified: The 93% FET price drop ties to overall sentiment and liquidity issues, not solely Ocean’s actions, per founder Bruce Pon’s detailed rebuttal.
• Transparency in Crypto Alliances: Blockchain data highlights the need for clear token handling in mergers to avoid disputes and maintain community trust.

Conclusion

The ongoing feud between Fetch.ai and Ocean Protocol over the FET token price drop and alleged $120 million token dump exemplifies challenges in AI-crypto collaborations within the Artificial Superintelligence Alliance. By prioritizing amicable resolutions like token returns and legal claim withdrawals, both parties can refocus on innovation amid market volatility. As the crypto sector evolves, such transparency will be crucial for sustaining investor trust and driving future growth in decentralized AI technologies—watch for updates on this developing story.