Ocean Protocol's abrupt departure from the ASI Alliance has ignited serious accusations of a significant token rug pull. On-chain analytics provided by Bubblemaps suggest that the project transferred approximately 270 million FET, valued at an estimated $120 million, to Binance and an over-the-counter (OTC) provider without prior notification to the alliance or FET holders.
The ASI Alliance, established in March 2024, was designed to unite Ocean Protocol, Fetch.ai, and SingularityNET under a unified token, FET. Under this agreement, Ocean Protocol's OCEAN tokens were convertible to FET at a predetermined rate.
Ocean Protocol Under Scrutiny
Despite the merger, Ocean Protocol maintained a substantial amount of OCEAN within wallets reportedly controlled by the team, intended for community incentives and data farming. According to Bubblemaps' analysis, on July 1, 2024, a wallet associated with Ocean Protocol converted 661 million OCEAN into 286 million FET. Subsequently, 90 million FET were transferred to the OTC provider GSR Markets.
By August 31, the remaining 196 million FET were distributed across 30 newly created addresses. By October 14, almost all of these funds had been moved to Binance or other OTC providers. This amounted to an estimated 270 million FET in total transfers: 160 million to Binance and 109 million to GSR Markets. These transfers occurred shortly after Ocean Protocol's exit from the ASI Alliance on October 9, an action that was not accompanied by any public explanation or disclosure regarding the redistribution of community tokens.
In response to these events, the Fetch.ai team publicly alleged on X that Ocean Protocol had sold tokens designated for community rewards. The CEO of Ocean Protocol, however, refuted these claims, dismissing them as "unfounded and baseless rumors" and stating that a formal response would be provided soon.
The on-chain data currently confirms the token conversions and subsequent transfers. This has raised significant questions regarding whether a liquidation of these assets took place and the reasons behind moving such a substantial volume of community-allocated funds without prior coordination.
Demands for Transparency from Ocean Protocol
In light of these developments, Fetch.ai CEO Humayun Sheikh, along with the wider FET community, is demanding greater transparency from Ocean Protocol concerning the management of these assets. Specific concerns have been raised about the timing of the token conversions preceding the alliance exit, the control structure of the OceanDAO SAFE wallet and Ocean Expedition, and the final destination of the transferred tokens.
In an official statement, Sheikh articulated his position:
The ASI Alliance was founded on principles of collaboration, transparency, and shared accountability. While the situation with Ocean Protocol continues to evolve, our focus remains on protecting FET holders and upholding the integrity of the ecosystem. Challenges like this test the strength of our alliances, but they also reinforce why these principles matter. We are committed to ensuring that transparency prevails, that the community’s trust is respected, and that the foundations we’ve built for a decentralized, collaborative future remain intact. Our expectation is clear: Ocean must provide answers, and the ecosystem must learn from this moment to emerge stronger and more resilient.
Addressing these concerns, Fetch.ai has initiated class-action claims to assist affected FET holders in pursuing compensation. This action could potentially lead to multi-jurisdictional lawsuits and increased scrutiny of Ocean Protocol's governance and token management practices.