NAIROBI (CoinChapter.com)— The Artificial Superintelligence Alliance (ASI), formed by the merger of Fetch AI (FET), Ocean Protocol, and SingularityNET (AGIX), has announced a 5 million FET token burn set for Jan. 10, 2025. The move aims to permanently reduce supply, potentially enhancing token value.

Token Burn Details and Market Reaction

Humayun Sheikh, co-founder of Fetch AI, revealed the planned burn, which aims to permanently remove five million tokens from circulation. This step is expected to create scarcity and potentially drive demand for the remaining FET tokens. The crypto market traditionally views token burns favorably, often associating them with price appreciation.

ASI Alliance announces 5M FET token burn. Source: X

Despite the announcement, FET’s price has yet to experience a dramatic rally. However, the token has recorded a 14% gain over the past week, reflecting cautious optimism among investors. With a market cap of $3.63 billion, FET ranks as the sixth-largest AI-focused cryptocurrency, trailing NEAR’s $6.7 billion valuation.

ASI’s Role in Decentralized AI

The Artificial Superintelligence Alliance has formed as a collaboration among Fetch AI, Ocean Protocol, and SingularityNET, focusing on decentralizing AI development and reducing reliance on centralized control.

5M $FET token burn set for Jan. 10. Source: X

Operating on Ethereum, BNB Chain, and Cosmos, FET offers broad interoperability. Consequently, this strengthens its position as a key player in the blockchain ecosystem. The merger paves the way for the ASI token, which will unify the economic activities of the three projects.

Despite its growing influence, FET remains 57% below its all-time high of $3.47, recorded nine months ago. However, market analysts suggest that the upcoming token burn and the merger’s synergies could bolster FET’s price trajectory. In fact, some  speculate a target of $3 in the near future.

Overall, the 5 million FET token burn underscores the alliance’s strategic approach to bolstering its ecosystem. By reducing supply and leveraging the merger’s synergies, the Artificial Superintelligence Alliance aims to maintain its competitive edge in the growing decentralized AI market.

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