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FET Drops 9% as Phase 1 of ASI Token Merger Begins
The Artificial Superintelligence Alliance (ASI) has begun Phase 1 of its token merger process. The project recently announced the start of the migration process with the delisting of Ocean Protocol (OCEAN) and SingularityNET (AGIX) from cryptocurrency exchanges. However, FET is facing some pressure following its rebranding and supply upgrade.
Phase 1 of the ASI Token Merger Begins
On July 1st, the ASI and Fetch.AI (FET) alliance announced the multi-token merger to unify OCEAN, AGIX and FET. As part of Phase 1, withdrawals and deposits with OCEAN and AGIX would close in preparation for migration to FET.
Additionally, the process of delisting the two tokens from cryptocurrency exchanges would begin. In the meantime, FET would continue to trade as usual, with spot and perpetual trading continuing under the same tricker.
The initial phase of the merger aims to “integrate exchanges and data aggregators for a seamless transition.” Fetch.AI has seen a rebranding across all platforms. The project has taken the name and logo of the Artificial Superintelligence Alliance, but has retained its ticker.
Furthermore, the ASI alliance opened a migration platform on the SingularityDAO dApp to help users migrate their tokens. Some cryptocurrency exchanges, including Kraken and Coinbase, revealed that they would not support customers on the ASI token merger.
Kraken announced that OCEAN and FET trading will continue to be supported on the platform until further notice. The exchange also noted that users must withdraw their tokens to a self-custodial wallet to migrate them.
Likewise, Coinbase informed its users that it has chosen “not to migrate these assets on behalf of users.” Both exchanges also made it clear that they would not support any migration from FET to ASI.
FET backtracks after rebranding
After updating the token name, supply and market cap, FET has changed Give (RNDR) in the AI token sector. According to CoinMarketCap data, the token is now the 27th largest cryptocurrency by market cap, with $3.38 billion.
After the rebranding, the price of FET dropped similarly to when the news of the token merger delay was released. At the time, the merging tokens saw an 8-10% price drop following the merger rescheduling. The delay was attributed to logistical and technical issues.
FET fell from the $1.4 support zone on Monday to $1.27, a 9.7% decline in 12 hours. However, the AI token has recovered to the $1.3 mark, currently trading at $1.33, representing a 3.6% decline in the last 24 hours.
Some market observers found this performance disappointing. Some investors believe it would be best to stay out of the mix until the merger is complete. Sjuul Follings, a cryptocurrency trader and founder of Alt Crypto Games, expressed his disappointment with the recent trick.
According to the merchant, it was optimistic on the price action of late June, believing that the token was about to break out and expand ahead of the ASI alliance. However, FET failed to reclaim the $1.8 support zone and retraced the $1.4 support level over the weekend.
Despite the bearish trend, investors remain optimistic about the future of the token, as Phase 1 of the merger has just begun. Some investors forecast a short-term price target of $5 for ASI and a long-term target of $13.
Featured image from Unsplash.com, chart from TradingView.com