Ocean Protocol Departs ASI Alliance Igniting FET Token Feud

The artificial intelligence space in cryptocurrency took a dramatic turn this month as Ocean Protocol severed ties with the ASI Alliance, casting a shadow over what was once hailed as a groundbreaking merger of AI-driven blockchain projects. Formed in March 2024, the alliance united Fetch.ai, Ocean Protocol, and SingularityNET to build a decentralized AI ecosystem, pooling their resources and tokens into a single powerhouse. By converting Ocean's OCEAN and SingularityNET's AGIX into Fetch.ai's FET token, rebranded as ASI, the group aimed to streamline operations and foster innovation without the friction of multiple assets. Community governance sealed the deal in April 2024 with near-unanimous approval, setting the stage for a unified future in AI and crypto.

Phase one of the token migration wrapped up in July 2024, successfully shifting more than half of the outstanding OCEAN and AGIX supplies into FET. Major platforms like Binance, Bitfinex, and KuCoin facilitated the process smoothly, though Coinbase chose to maintain separate trading pairs for OCEAN and FET. Bridges stayed open for holders opting for voluntary swaps, reflecting a commitment to inclusivity during the transition. This consolidation positioned the ASI Alliance as a leader in decentralized intelligence, attracting developers and investors eager for scalable AI solutions on blockchain.

Tensions Erupt into Public Confrontation

Fast forward to October 9, 2025, when the Ocean Protocol Foundation shocked the community by pulling its directors and formally resigning from the ASI Alliance. This abrupt exit decoupled OCEAN from FET, enabling it to resume independent trading on exchanges such as Coinbase, Kraken, and Uniswap. Fetch.ai CEO Humayun Sheikh quickly fired back, alleging that Ocean had minted 719 million OCEAN tokens back in 2023 before the merger and later converted 661 million of them into 286 million FET tokens. Valued at around $84 million during the July 2025 swap, these funds allegedly flowed to centralized exchanges and market makers without proper disclosure, a move Sheikh described as detrimental to FET holders.

Ocean Protocol countered these claims by affirming the integrity of its treasury and proposing an independent review to lift confidentiality veils on its operations. The foundation framed its departure as a strategic pivot toward strengthening its core focus on decentralized data infrastructure, rather than fully embedding into the alliance's expansive AGI vision alongside Fetch.ai and SingularityNET. Within the ASI community, voices split sharply, with some labeling Ocean's actions as opportunistic gains from the partnership's visibility, while others defended it as a legitimate course correction in evolving collaborations. Reports surfaced of Ocean offloading approximately 500 million FET tokens to bolster OCEAN liquidity, a tactic uncovered through ASI's internal probe and linked to a 22% plunge in FET's price over two days.

Sheikh escalated the rhetoric by vowing to bankroll class-action lawsuits across various jurisdictions, inviting affected FET holders to compile evidence through dedicated channels. He pressed exchanges like Binance and liquidity providers such as GSR and ExaGroup to scrutinize the transactions, leaning heavily on on-chain records for transparency. The merger agreement's arbitration clause now guides the formal dispute, where blockchain data on transfers and deposits could prove decisive. Adding to the volatility, Binance revealed plans to halt OCEAN deposits on the Ethereum network effective October 20, 2025, at 3:00 UTC, while preserving access via alternative chains. Though Binance tied this to routine risk management, Sheikh saw it as an endorsement of his push for accountability, urging users to double-check transactions amid the flux.

The chain of events traces back to the alliance's optimistic launch in March 2024, when the merger announcement promised seamless token unification under FET as ASI. April brought the governance green light with over 99% support, paving the way for July's migration milestone. Now, in October 2025, the fallout unfolds with accusations flying and legal gears turning, underscoring the fragile dynamics of crypto consolidations.

Investor trust in AI-centric tokens has wavered, fueling heavy sell-offs in FET and broader caution around decentralized projects. On social media, reactions range from betrayal narratives to pragmatic takes on partnership evolutions, with many calling for clearer merger safeguards. The remaining ASI core, bolstered by Fetch.ai, SingularityNET, and partners like Cudos, presses ahead with technical upgrades and outreach to new affiliates. Talks of token burns or buybacks aim to stabilize supply, signaling resilience amid the storm. As arbitration takes shape and potential legal eyes turn toward the onchain trail, this episode serves as a reminder of the high stakes in blending technical ambitions with realities, where transparency remains the ultimate safeguard for progress.