The prolonged dispute between Fetch.ai and Ocean Protocol regarding approximately 286 million FET tokens valued at around $120 million, appears to be progressing toward resolution.
Both parties have indicated a willingness to reach a settlement. Ocean Protocol has reportedly expressed readiness to return the FET tokens, contingent on receiving a formal written proposal from Fetch.ai. In response, Fetch.ai has stated it would withdraw its legal claims once the tokens are returned in full.
No official agreement has been signed, but the latest communication marks a significant step forward after months of tension that undermined confidence in the broader AI-crypto alliance, previously involving SingularityNET.
The conflict began when Fetch.ai accused Ocean Protocol of converting OCEAN tokens into FET and transferring part of the holdings to centralized exchanges, including Binance and GSR. The transactions raised concerns over potential sell pressure and led to widespread community backlash.
Since the controversy emerged, FET has declined by more than 90% from its yearly peak, stabilizing recently around $0.27. Technical indicators show the token remains in oversold territory, with the RSI near 27.
Market participants remain cautious, awaiting clarity on several key points — including the handling of returned tokens, any lockup or vesting terms, and future governance arrangements.
A finalized and transparent settlement could help alleviate supply concerns, restore investor confidence, and reestablish credibility within the AI-token ecosystem. However, if negotiations stall or tokens are reintroduced without clear restrictions, the uncertainty could persist and further weigh on sentiment.
