TL;DR
- FET token holders continue to feel the aftermath of the Fetch.ai and Ocean Protocol dispute, which triggered a 93% collapse in FET’s market value.
- Despite signs of settlement, investor confidence remains fragile as both projects struggle to stabilize their ecosystems.
- The incident has reignited debate over AI-blockchain governance, with Ocean’s OCEAN token also falling sharply while AGIX shows minor declines amid broader volatility.
After weeks of turmoil between Fetch.ai and Ocean Protocol over $120 million in disputed tokens, the AI-blockchain sector is still reeling from the fallout. Although Fetch.ai CEO Humayun Sheikh recently offered to withdraw all legal claims if the tokens are returned, the market impact continues to echo through decentralized AI assets. Market observers believe this dispute could serve as a cautionary tale for future blockchain alliances involving multi-token frameworks and complex treasury structures.
The FET token currently trades at $0.2586, up 3.87% in the past 24 hours, but remains down more than 92% from its all-time high. Its market cap sits at $612.96 million, a sharp contraction that reflects shaken investor sentiment and persistent uncertainty about the alliance’s future.
Market Reaction Signals Lingering Distrust
Following the feud, OCEAN has dropped 9.59% in the last 24 hours to $0.2953, with a market cap of $185.44 million. Meanwhile, AGIX has also seen a 2.15% decline, trading at $0.1214 and holding a $147.14 million market cap. Analysts suggest that despite Ocean’s attempts to clarify its position, the feud has severely eroded trust across the AI-token ecosystem.
Investors are questioning whether the settlement will be enough to restore confidence or if the reputational damage to Fetch.ai’s governance model will persist. Some blockchain data indicates significant capital outflows from DeFi pools linked to the ASI Alliance, reflecting the market’s cautious stance and an ongoing decline in liquidity across key exchanges.
AI Token Alliance Faces Crossroads
The feud, which began over alleged unauthorized conversions of OCEAN to FET, has exposed deep fractures within the Artificial Superintelligence (ASI) Alliance. Ocean Protocol maintains that its actions were compliant with treasury policy, while Fetch.ai insists that millions in community assets were misappropriated.
Experts note that the episode underscores how fragile early AI-blockchain integrations remain, particularly when multiple governance frameworks and treasuries collide. Even if Ocean returns the disputed tokens, restoring liquidity and confidence may take months.
For now, FET’s modest daily rebound offers little comfort to long-term holders who witnessed one of 2025’s sharpest collapses in the AI-crypto sector.
