Ocean Protocol FET Conversion Triggers Governance Clash
Ocean Protocol FET conversion has come under scrutiny after on-chain data revealed a large token swap. Between July and October, a wallet converted 661 million OCEAN into 286 million FET. It sent 90 million FET to GSR Markets and 196 million FET to new addresses. Ultimately, 160 million FET landed on Binance and 109 million on OTC desks, totaling about $120 million.
Fetch.AI CEO Humayun Sheikh criticized the undisclosed transfers as a breach of ASI Alliance governance and called for formal investigations. Ocean Protocol CEO Bruce Pon rejected the allegations as baseless and announced legal action. The dispute follows Ocean’s withdrawal from the ASI Alliance in early October. FET price fell over 52% in October, while OCEAN rebounded from $0.25 to $0.30.
Ocean Protocol FET conversion highlights token governance risks and market volatility. Traders should watch FET price action, trading volumes, and legal developments closely. Ongoing governance uncertainty and increased sell-side liquidity could drive further volatility. Clear reporting and transparent token management remain critical for restoring market confidence.
Bearish
The news is bearish for FET as the large token transfers to centralized exchanges and OTC desks have increased sell-side liquidity, exerting downward pressure on price in the short term. The governance dispute and legal uncertainties further undermine trader confidence, which may prolong volatility and hinder recovery. In the long term, the outcome of investigations and clearer token governance could stabilize the market, but current signs point to continued bearish sentiment until transparency improves.