Fetch.ai and Ocean Protocol move toward resolving $120M FET dispute – Crypto News – Crypto News
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Fetch.ai and Ocean Protocol move toward resolving $120M FET dispute Fetch.ai and Ocean Protocol move toward resolving $120M FET dispute

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Fetch.ai and Ocean Protocol move toward resolving $120M FET dispute – Crypto News

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Key Takeaways

Why does this dispute matter?

Because the return of the 286M FET tokens could remove a major supply-overhang risk and restore trust in the AI-crypto alliance.

What changed this week?

During an X Space, both sides signaled willingness to settle, but no official agreement has been signed yet.

The long-running dispute between Fetch.ai and Ocean Protocol over roughly 286 million FET tokens [worth about $120 million] appears to be moving toward resolution. 

The development surfaced during a community X Space, where Fetch.ai signaled willingness to settle. However, no official joint statement or signed agreement has been released, leaving the situation unresolved.

Background: A dispute that shook the “AI crypto alliance”

On 21 October, AMBCrypto reported that Fetch.ai accused Ocean Protocol Foundation of converting OCEAN tokens into FET. 

They then moved a portion of the holdings to centralized exchanges, including Binance and market-maker GSR.

At the time, these transfers raised concerns about potential sell-pressure and intentional token dumping. 

This triggered sharp community backlash and damaged trust across the AI-crypto coalition that previously included SingularityNET.

Since then, FET has suffered a steep decline, falling over 90% from its annual peak, and crashing to the $0.23–$0.26 range in recent trading.

The latest update: Ocean signals willingness to return FET tokens

During the X Space discussion, Fetch.ai signalled willingness to drop the lawsuit against Ocean Protocol if they returned the FET tokens. 

Ocean Protocol reportedly indicated its readiness to return the FET tokens, provided it receives a formal written settlement proposal from Fetch.ai. 

Fetch.ai representatives stated that they will withdraw legal claims if the tokens are returned in full.

For now, the arrangement remains conditional and informal. Additionally, there is no signed settlement document, and neither project has issued a formal public announcement. 

This leaves the community cautiously optimistic, but not convinced.

Market reaction: FET stabilizes but remains deeply oversold

The FET price chart indicates that the token has entered deep oversold territory, with the RSI hovering near 27. 

This is a historically significant region associated with reversal attempts. As of this writing, it was trading at around 0.27, with an increase of over 3%.

Source: TradingView

However, traders appear hesitant to position aggressively until the token-return details are clarified — particularly around:

  • Where the returned tokens will be held
  • Whether vesting/lockups will apply
  • Who controls treasury governance in the future

Without these answers, supply-overhang risk remains a core concern.

What comes next?

If the agreement is finalized and tokens are returned under transparent lockup terms, the move could restore credibility and relieve sell-pressure fears on FET.

If negotiations stall — or if tokens re-enter circulation without controls — market confidence could weaken further.

For now, the market is waiting, and the alliance’s future hinges on whether the two teams can document and execute what they just signaled in public.

Next: Analyzing WLFI’s 13% rally – Can bulls target $0.20 next?

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