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FET Drops 9% As ASI Token Merger Phase 1 Kicks Off

The Artificial Superintelligence Alliance (ASI) kicked off phase 1 of its token merger process. The project recently announced the beginning of the migration process with the delisting of Ocean Protocol (OCEAN) and SingularityNET (AGIX) from crypto exchanges. However, FET is facing some pressure following its rebranding and supply update.

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ASI Token Merger Phase 1 Begins

On July 1, the ASI alliance and Fetch.AI (FET) 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 the migration to FET.

Additionally, the delisting process from crypto exchanges would begin for the two tokens. Meanwhile, 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 “onboard exchanges and data aggregators for a smooth transition.” Fetch.AI saw a rebrand across platforms. The project took the Artificial Superintelligence Alliance name and logo but kept its ticker.

Moreover, the ASI alliance opened a migration platform on the SingularityDAO dApp to help users migrate their tokens. Some crypto exchanges, including Kraken and Coinbase, revealed they would not support customers on the ASI token merger.

Kraken announced that the trading of OCEAN and FET 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.

Similarly, Coinbase informed its users that it chose to “not execute the migration of these assets on behalf of users.” Both exchanges also clarified they would not support the eventual migration from FET to ASI.

FET Retraces Following Rebrand

After updating the token’s name, supply, and market capitalization, FET flipped Render (RNDR) in the AI tokens sector. According to CoinMarketCap data, the token is now the 27th largest cryptocurrency by market cap, with $3.38 billion.

Following the rebrand, FET’s price dropped similarly to when the token merger delay news was released. At the time, the merging tokens saw an 8-10% price decline following the rescheduling of the merger. 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% drop in 12 hours. However, the AI token has recovered the $1.3 mark, currently trading at $1.33, representing a 3.6% decline in the last 24 hours.

Some market watchers found this performance disappointing. Some investors believe it might be best not to get involved until the merger is completed. Sjuul Follings, crypto trader and founder of Alt Crypto Games expressed his disappointment with the token’s recent fakeout.

Per the trader, he was optimistic about the late June price action, believing the token was about to break out and expand ahead of the ASI alliance. Nonetheless, FET could not reclaim the $1.8 support zone and retraced to the $1.4 support level over the weekend.

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Despite the bearish trend, investors remain optimistic about the token’s future as the merger’s phase 1 is only starting. Some investors forecast a short-term price target of $5 for ASI and a long-term goal of $13.

FET is trading at $1.33 in the weekly chart. Source: FETUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

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