Fetch.AI (FET) has recently taken a significant step in the crypto AI space by becoming the reserve currency for the Superintelligence Alliance (ASI), a merger of three leading AI projects: Fetch.AI, Ocean Protocol, and SingularityNET. However, this development has been accompanied by increased selling pressure, leading to a price decline.
Major FET Token Minting and Whale Movements
The Fetch Foundation minted an additional 1.48 billion FET tokens, valued at approximately $2.96 billion, to support the requirements of the new ASI alliance. This move increased the total supply of FET by 2.63 billion tokens.
Following this substantial increase in supply, large wallet holders, often referred to as "whales," began moving their assets to exchanges. Data from cryptocurrency intelligence tracker Spotonchain reveals that two whale wallets, which received FET from the foundation, deposited 1.47 million FET into the centralized exchange Binance.
This pattern is not new. In April, the same tracker identified two whale wallets depositing 4.9 million FET tokens into Binance. Shortly after these deposits, the AI token experienced a price correction. This behavior is typical of whales liquidating their holdings to realize profits.
Impact on FET Price
As the market digested the news of the token minting and the subsequent whale deposits, FET's price declined by over 2.5%. At the time of writing, FET is trading at $2.2765.
The increased supply, combined with selling pressure from large holders, creates a challenging short-term environment for the token's price. Investors and traders are closely monitoring these movements to gauge potential future trends.
Understanding the Superintelligence Alliance (ASI)
The Superintensity Alliance represents a consolidation of efforts between three major AI-focused crypto projects: Fetch.AI, Ocean Protocol, and SingularityNET. The new entity's native token is ASI, which stands for Artificial Superintelligence Token.
Holders of Ocean Protocol's OCEAN and SingularityNET's AGIX tokens can convert their assets into the reserve currency, FET. This conversion will occur at a 1:1 ratio for FET to ASI. The alliance aims to create a powerful decentralized AI infrastructure, pooling resources and expertise from all three projects.
Why Token Minting Can Affect Prices
The minting of new tokens is a significant event that can influence a cryptocurrency's market dynamics. Here’s why:
- Increased Supply: Introducing a large number of new tokens into circulation increases the total available supply. If demand does not increase proportionally, the value of each individual token can decrease due to basic economic principles of supply and demand.
- Investor Perception: Such events can signal dilution to existing holders, potentially leading to decreased confidence and increased selling activity.
- Whale Activity: Large holders often anticipate or react to these events by moving to secure profits, which can accelerate price declines.
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Frequently Asked Questions
What is the Superintelligence Alliance (ASI)?
The Superintelligence Alliance is a merger of three artificial intelligence projects: Fetch.AI, Ocean Protocol, and SingularityNET. It aims to create a unified and powerful decentralized AI network, with a new native token called ASI.
Why was there a large FET token minting?
The Fetch Foundation minted 1.48 billion new FET tokens to act as the reserve currency for the new ASI alliance. This was necessary to facilitate the conversion of OCEAN and AGIX tokens into the ASI ecosystem.
How do whale movements affect FET's price?
When large holders (whales) deposit significant amounts of a token onto exchanges, it often indicates an intention to sell. This action increases the available supply on the market and can create downward pressure on the token's price.
What is the conversion ratio for FET to ASI?
The conversion from FET to the new ASI token will occur at a 1:1 ratio. Holders of OCEAN and AGIX will also be able to convert their tokens into ASI at specified rates.
Should investors be concerned about the price dip?
Short-term price movements driven by token minting and whale profit-taking are common in cryptocurrency markets. The long-term value will depend on the adoption and success of the Superintelligence Alliance's combined technology and vision.
Where can I track FET and ASI token metrics?
You can monitor prices, trading volumes, and large wallet movements on various cryptocurrency data aggregators and exchange platforms. 👉 Get advanced market tracking methods