Ocean Protocol accused of dumping $100M in $FET tokens
Ocean Protocol faces scrutiny after Bubblemaps reported large token transfers to Binance and GSR Markets.
Key Takeaways
What happened?
Data showed that Ocean Protocol converted 661 million $OCEAN into $FET and later distributed a large portion to exchanges.
How did Fetch.AI respond?
Fetch.AI’s CEO accused Ocean Protocol of misconduct, suggesting the actions would be “a rug pull” if done by any standalone project.
The Artificial Superintelligence [ASI] alliance is facing internal turmoil. On-chain data suggests that Ocean Protocol may have offloaded more than $100 million worth of $FET tokens.
The data from on-chain analytics firm Bubblemaps has reignited debate over transparency within AI-focused crypto projects.
Bubblemaps traces $191M token conversion
According to Bubblemaps’ report, an Ocean Protocol multisig wallet converted 661 million $OCEAN into 286 million $FET on 1 July. The tokens were worth about $191 million at the time.
Subsequent movements show the wallet split 196 million FET across 30 fresh addresses. Most of those tokens were later sent to Binance or OTC provider GSR Markets between late August and mid-October.
On-chain data indicates roughly 270 million FET, valued around $120 million, ultimately reached centralized exchanges — a pattern often associated with liquidation.
The backdrop: ASI alliance fractures
Ocean Protocol, Fetch.AI, and SingularityNET merged in early 2024 under the Artificial Superintelligence (ASI) Alliance. Through this alliance, they combined their tokens under a unified $FET framework.
Despite the merger, Ocean maintained control over 51% of its $OCEAN supply, funds originally earmarked for “community incentives” and data farming.
However, tensions emerged when Ocean announced on 9 October that it was withdrawing from the alliance, allowing $OCEAN to be “de-pegged and relisted on exchanges.”
No mention was made of the transferred tokens, sparking speculation among investors and partner projects.
Fetch.AI calls it “misconduct,” Ocean fires back
Fetch.AI CEO Humayun Sheikh publicly accused Ocean Protocol of selling community tokens, calling the act “a rug pull if done by any standalone project.”
In response, Ocean Protocol co-founder Bruce Pon dismissed the allegations as “unfounded and baseless rumors.” He added that the team was preparing a formal response and that legal proceedings are underway.
Bubblemaps clarified it could not confirm whether the transfers were indeed sales but noted that such activity “is typically associated with liquidation.”
Market reaction: $FET plunges, OCEAN rebounds
Following the fallout, Fetch.AI’s FET token dropped over 52% between 9 and 21 October, sliding from $0.55 to around $0.27, according to TradingView data.
By contrast, OCEAN rebounded during the same period, rising from $0.25 to $ 0.30. The RSI currently sits near 55, suggesting recovering momentum after oversold conditions earlier this month.
The divergence hints at shifting sentiment — with investors possibly viewing Ocean’s independence and upcoming relisting as a stabilizing move. At the same time, uncertainty clouds FET’s outlook amid instability in the alliance.
What’s next
As legal and governance processes unfold, both teams face pressure to provide full transparency over token allocations and on-chain movements.
The ASI alliance, once hailed as a breakthrough in decentralized AI collaboration, now stands as a test case for how Web3 partnerships handle trust, treasury management, and public accountability.
