Key takeaways
Why is this dispute important?
Because the return of the 286 million FET tokens could eliminate a major risk of oversupply and restore confidence in the AI-crypto alliance.
What changed this week?
At an X Space, both parties expressed their desire to reach a settlement, but no official agreement has yet been signed.
The long-running dispute between Fetch.ai and Ocean Protocol over approximately 286 million FET tokens (worth approximately $120 million) appears to be close to being resolved.
The development surfaced during a X Space communitywhere Fetch.ai has signaled its willingness to set up shop. However, no official joint statement or signed agreement has been issued, leaving the situation unresolved.
Context: A dispute that shook the “crypto AI alliance”
On October 21, AMBCrypto reported that Fetch.ai accused Ocean Protocol Foundation of converting OCEAN tokens into FET.
They then moved some of the holdings to centralized exchanges, including Binance and market maker GSR.
At the time, these transfers raised concerns about possible selling pressure and intentional dumping of tokens.
This sparked a strong community backlash and damaged trust within the AI-crypto coalition that previously included SingularityNET.
Since then, FET has suffered a steep decline, falling more than 90% from its yearly high and collapsing into the $0.23-$0.26 range in recent trading.
The Latest Update: Ocean Signals Willingness to Return FET Tokens
During the discussion on X Space, Fetch.ai signaled its willingness to drop the lawsuit against Ocean Protocol if it returned the FET tokens.
Ocean Protocol has reportedly indicated that it is willing to return the FET tokens, provided it receives an official written settlement proposal from Fetch.ai.
Fetch.ai representatives said they would withdraw their legal claims if the tokens were returned in full.
For now, the agreement remains conditional and informal. Additionally, there are no signed settlement documents and neither project has issued an official 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 sitting near 27.
This is a historically important region associated with reversal attempts. At the time of writing, it was trading around 0.27, up more than 3%.
Source: TradingView
However, traders appear to be hesitant to position aggressively until the details of the token return are clarified, particularly around:
- Where will the returned tokens be kept?
- Whether vesting/blocks will apply
- Who will control treasury governance in the future?
Without these answers, the risk of oversupply remains a major concern.
What comes next?
If the deal is finalized and the tokens are returned under transparent lockup conditions, the move could restore credibility and ease fears of selling pressure on FET.
If negotiations fail – or if tokens return to circulation unchecked – market confidence could further weaken.
For now, the market waits, and the future of the alliance depends on both teams’ ability to document and execute on what they have just publicly signaled.
