Ocean Protocol’s $120M OCEAN-to-FET Sale Sparks ASI Fallout
Ocean Protocol is accused of secretly selling community OCEAN tokens worth $120 million, converting 661 million OCEAN into 286 million FET in July. Approximately 90 million FET were moved to GSR Markets, while 196 million FET were distributed across 30 new addresses by August 31. By October 14, nearly all 270 million FET had been transferred into Binance and other OTC channels. On October 9, Ocean Protocol abruptly exited the ASI Alliance without disclosing these token movements. Fetch AI publicly labeled the sale a “rug pull” and offered a $250,000 bounty to expose OceanDAO signatories. Ocean Protocol’s CEO denied any wrongdoing and pledged a formal response. The episode highlights concerns over on-chain transparency, FET liquidity, and potential price pressure. Traders should monitor FET price action, balance sheet flows, and regulatory scrutiny as market sentiment may shift.
Bearish
The alleged $120 million OCEAN-to-FET token dump by Ocean Protocol exposes significant on-chain outflows and governance opacity. In the short term, the large FET transfers to OTC channels and Binance create downward price pressure and undermine trader confidence. Over the longer term, questions around transparency and alliance breakdown may deter new capital inflows and increase regulatory scrutiny. Together, these factors point to sustained bearish sentiment for FET unless Ocean Protocol provides clear governance updates and stabilizes liquidity.