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ASI Alliance Voting Opens: What Lies Ahead for AGIX, FET and OCEAN?

Last Updated April 2, 2024 8:03 AM
Valdrin Tahiri
Last Updated April 2, 2024 8:03 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • AGIX, FET and OCEAN are in talks to merge their tokens into the ASI token.
  • Their prices have been trending downward since the announcement on March 28.
  • How will the merge affect holders of these three tokens if it goes through?

Last week, Fetch.ai, Ocean Protocol and SingularityNET announced they were in discussions about merging to create a decentralized AI platform called the Artificial Superintelligence (ASI) Alliance.

The announcement of the ASI Alliance has raised numerous questions, mostly regarding to holders of the tokens for the three protocols, namely FET, OCEAN and AGIX. Holders show interest in the swap ratios between the tokens, continuation of farming rewards and if they need to take any actions to commence the aforementioned swaps.

What Is the ASI Alliance?

The proposed ASI Alliance aims to combine the forces of the three protocols and create a large, open-source AI infrastructure. It will be led by the CEO of SingularityNET, Ben Goertzel.

This merge will only be contingent on a majority approval for the community. On April 2, a governance proposal was made available to FET & AGIX token stakers. It will continue until April 7 for FET and April 16 for AGIX.

All three projects  bring their own unique skills and advantages. Fetch.ai has advanced autonomous AI agents , Ocean Protocol has data sharing and monetization while SingularityNET has R&D in AI integration.

AGIX, FET & OCEAN Supply | Credit: Fetch.ai

At signing, the ASI token had a proposed price of $2.82 at a supply of 2.63 billion tokens. This amounts to a market capitalization of $7.5 billion, ranking at #19 in the current rankings. FET tokens will be swapped at a ratio of 1:1 while AGIX & OCEAN tokens will be swapped at a ratio of 1:0.43.

However, the ASI price is not fixed at $2.82. Rather, FET will be the reserve currency of the Alliance and will be renamed ASI , serving as the benchmark for its price.

FET has a supply of 1.15 billion tokens. If the merge goes through, another 1.48 billion tokens will be minted and allocated to AGIX  and OCEAN holders. The figures come from the same swap ratio. AGIX has a supply of 2 billion while OCEAN has a supply of 1.41 billion. Multiplying them with 0.43 leads to the allocation figures of 867 million for AGIX and 611 million for OCEAN.

The exchange rates will stay fixed and will remain open indefinitely if the merger goes through. In centralized exchanges, this swap will likely happen automatically. So, holders do not need to undertake any action.

How Will This Affect OCEAN Data Farming?

Perhaps the biggest change for the three individual tokens will come in Ocean’s Protocol incentive program of data farming.

OCEAN holders could previously lock their tokens and receive veOCEAN for an average APY of 21%. By curating data and making predictions, these holders could also earn ROSE as a reward. This was the basis of active and passive participation in the Ocean Protocol.

However, the governance vote prompted the pause of this program on March 28. If the vote is yes, passive and volume data farming will come to an end. If the vote is no, business will resume as usual.

It is important to note that veOCEAN holders will still receive rewards even if the merger goes through. For example, if a person stakes 100 OCEAN for 4 years at an APY of 25%, they will receive 144 OCEAN immediately after the merger (25% annually) and then the remaining 100 after the lock period comes to an end.

It is worth mentioning that OCEAN token holders will not participate in the vote, since they relinquished control  of the OCEAN token after the max supply was minted.

FET Price Prediction: What’s Next?

Since FET will act as a reserve currency, it is likely that its price movement will affect the other two. Due to the fixed 1:0.43 rate of conversion, it seems unlikely that the price of AGIX and OCEAN will divergence significantly from this ratio, due to the possibility of arbitrage profits, especially as the date of the merger draws nearer.

The FET price has fallen since reaching an all-time high of $3.48 on March 28. The decrease was combined with bearish divergence in both the daily RSI and MACD (green lines), a sign often associated with market tops.

FET Price Corrects After All-Time High
FET/USDT Daily Chart | Credit: TradingView

Shortly after the all-time high, FET also fell below the $3.10 horizontal area, confirming a deviation and making it likely that the FET price is correcting. If so, the closest support is 14% below the price, at the 0.382 Fib retracement support level of $2.35. Conversely, the $3.10 area will likely provide resistance in case of a bounce.

Correction Ahead Despite Merger

The Artificial Superintelligence Alliance could be an extremely positive development in the long-term if the governance proposal passes through. However, the FET, OCEAN & AGIX price are trending downward in the past week. It is possible that the correction will continue in the short-term before the prices eventually reach a local bottom.

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