FET Drops 5% After Ocean Exits ASI Alliance Shock

Key Insights:

• Ocean’s departure from ASI marks a strategic pivot toward independent token control and project direction.
• FET drops 5% as Ocean confirms exit, with 270M unconverted tokens still in circulation.
• Buyback and burn plan launched by Ocean aims to stabilize value post-ASI withdrawal and token migration.

Ocean Protocol Foundation has exited the Artificial Superintelligence Alliance (ASI), ending its collaboration with Fetch.ai (FET) and SingularityNET (AGIX). The foundation confirmed the move after its board members stepped down from the alliance. It will now return to operating independently, focusing on data infrastructure and its own token model.

Ocean had worked with ASI partners since 2023 on joint developer events and content. The decision marks a clear shift in strategy, with Ocean opting to pursue its roadmap without shared governance.

Token Swap Nearly Complete, Buyback Plan Starts

As part of the earlier agreement, 81% of Ocean’s token supply has already been converted to FET at a fixed 1:0.433226 ratio. Around 270 million OCEAN tokens remain in circulation, held across roughly 37,000 wallets. Token holders can still swap OCEAN for FET using supported platforms such as Coinbase, Kraken, Upbit, and Uniswap.

With the split confirmed, Ocean has announced a token buyback and burn plan. The foundation will use profits from its ecosystem to reduce token supply, aiming to support price stability under its standalone strategy.

FET Price Drops After Exit News

FET fell 5% after news of Ocean’s exit. The token is now priced at $0.5276, reflecting a 21.5% drop over the past month. Market cap is at $1.25 billion, down 5%. Despite the price decline, 24-hour trading volume rose to $110.95 million, a gain of nearly 12%.

The price reaction followed concerns that OCEAN tokens may have been moved to exchanges before all users had a chance to redeem. One community member said, “FET appears to have been dumped at a higher market cap than redemption gives,” raising questions about fairness in the process.

Market Focus Turns to Remaining Tokens and Stability

With 270 million unconverted OCEAN still in the market, traders are watching how the rest of the migration will unfold. The buyback plan and Ocean’s next moves will likely shape short-term sentiment.