The conflict between Fetchai and Ocean Protocol, two blockchain<\/a> projects that once teamed up<\/a> under the Artificial Superintelligence Alliance, is heating up amid growing concerns that Ocean Protocol quietly dumped over a $100 million worth of FET tokens.<\/p>\n In an X post<\/a> on Monday, Oct. 20, Fetchai announced that it\u2019s organizing \u201ccollective legal action\u201d representing FET holders affected by Ocean Protocol\u2019s alleged conversion and transfer of tokens that Fetchai says resulted in losses for token holders.<\/p>\n Fetchai claims that in July, Ocean Protocol converted 661 million OCEAN tokens into 286 million FET, and later moved most of these tokens to exchanges, resulting in \u201cdemonstrable market impact and financial loss to FET holders.\u201d<\/p>\n Data from CoinGecko shows that starting July 22, the price of FET began a mostly steady decline to today\u2019s prices, losing over 70% in value by press time. FET is also down about 13% since Fetchai\u2019s Monday tweet.<\/p>\n Ocean Protocol announced its withdrawal from the Superintelligence Alliance Singapore, also known as the ASI Alliance, in an Oct. 9 post<\/a> on Medium, noting that the group was founded on \u201cvoluntary association and collaboration to promote decentralized AI through a token merger.\u201d<\/p>\n The ASI Alliance was originally announced<\/a> in March 2024, and involved the merger of three AI-focused blockchain projects Fetchai, Ocean Protocol, and SingularityNET, and their native tokens. <\/p>\n While Ocean Protocol didn\u2019t elaborate on the reasoning behind its exit from the ASI Alliance, the post stated that since July 2024, 81% of the OCEAN token supply had been converted into FET, leaving roughly 270 million OCEAN tokens still held across more than 37,000 holders. The post suggests that converting their OCEAN tokens to FET remains at the holders’ discretion.<\/p>\n The following day, in an Oct. 10 post<\/a> on X, Fetchai founder Humayun Sheikh wrote that Ocean Protocol exited the ASI Alliance \u201cwithout any prior warning or discussion,\u201d adding that the move has raised \u201cmany questions that need to be answered.\u201d<\/p>\n In commentary to The Defiant, Sheikh confirmed that \u201cthere has been no private communication from Ocean Protocol apart from what is publicly available.\u201d He also noted the ASI Alliance itself continues to move forward as Ocean Protocol \u201crepresented only a small part of the broader vision, our collective mission to build an open, decentralized AI ecosystem remains unchanged.\u201d<\/p>\n Commenting on Ocean\u2019s actions, Sheikh characterized them as a \u201cblatant misrepresentation to both the ASI Alliance and the broader $FET community,\u201d noting that the more the team uncovers, the \u201cclearer it becomes that Ocean\u2019s actions were deliberate and intended to harm the alliance and $FET holders.\u201d He added:<\/p>\n \u201cThey are attempting to hide behind claims that the Ocean Foundation and OceanDAO are separate entities, yet there is mounting evidence that this distinction is meaningless and that the founders themselves were directly involved.\u201d<\/p><\/blockquote>\n<\/figure>\n Ocean Protocol\u2019s CEO Bruce Pon dismissed<\/a> Fetchai\u2019s claims as \u201cunfounded and baseless rumors,\u201d saying in an Oct. 11 X post that his team has already proven them false in ongoing legal proceedings.<\/p>\n \u201cIf Fetch and Singularity agree, Ocean is prepared to waive confidentiality on the adjudicator\u2019s recent findings and let the community inspect and decide,\u201d Pon added in the X post.<\/p>\n Bubblemaps, a blockchain analytics firm that reviewed the transactions on-chain, detailed in an Oct. 21 X thread<\/a> that a multisig wallet tied to Ocean Protocol indeed converted 661 million OCEAN into 286 million FET in July.<\/p>\n Between July and August, per Bubblemaps\u2019 research, the Ocean team sent some of the FET to over-the-counter (OTC) trading firm GSR, and split the rest across 30 new wallets. By mid-October, Bubblemaps reports, a total of approximately 270 million FET \u2014 including from most of the 30 wallets \u2014 had been sent to Binance or the OTC provider. <\/p>\n \u201cWe can\u2019t confirm whether the $FET tokens were sold by Ocean Protocol, although such transfers are typically associated with liquidation,\u201d Bubblemaps concluded in the post. <\/p>\n\u2018Voluntary Association\u2019<\/h2>\n
What On-Chain Data Says<\/h2>\n
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