FET, the powering token for the Artificial Superintelligence Alliance (ASI) ecosystem, was trading with a bullish bias on Thursday, effectively outperforming almost all AI crypto coins.
The surge came after the Fetch.ai Foundation unveiled a $50 million buyback program. Community members interpret this as bullish fundamental for FET.
$50 Million Buyback Marks Strong Vote of Confidence in FET Utility
The Artificial Superintelligence Alliance token, FET, is up by over 7% and was trading for $0.7017 as of this writing. With this surge, FET has outperformed the top 30 AI crypto tokens ranked by market cap metrics.
The surge comes after the network announced a buyback initiative to reinforce the value of its native token. This move comes amid growing traction for its AI-driven agent platform and the ASI-1 large language model.
According to Fetch.ai CEO Humayun Sheikh, the buyback will occur across multiple major exchanges. The crypto executive said the move reflects both growing platform utility and a belief that FET is significantly undervalued.
The announcement has drawn attention from both traders and institutional players. Interest comes particularly as the ASI Alliance, a merger of Fetch.ai (FET), SingularityNET (AGIX), and Ocean Protocol (OCP), begins to see serious momentum.
Solid Intel, a popular crypto news aggregator on X (Twitter), noted that the buyback was directly linked to the growing utility of ASI1 and its agent platform. This suggests that the alliance’s AI infrastructure is beginning to find product-market fit.
DWF Labs Injection and Technical Setup Add Bullish Momentum
Adding to the bullish sentiment, blockchain sleuth Lookonchain reported that crypto market maker DWF Labs transferred $45 million USDT to the ASI Alliance just hours before the buyback was revealed.
An institutional USDT infusion and a substantial buyback have positioned FET as a top-performing AI token. Analysts like Satori_BTC noted that the buyback timing aligns technically with a key support level.
“They’re doubling down on the value of ASI & their agent platform. Technically, FET just tapped the lower Bollinger Band — a key support zone. Will the bounce follow?” Satori wrote.
Are Crypto Buybacks a Strategic Tool for Token Value Support?
Indeed, a buyback is a bullish fundamental that aims to reduce an asset’s circulating supply. The perceived increase in scarcity could drive up the token’s price, assuming demand remains constant or grows.
However, it is imperative to note that a recent Messari study determined that buybacks are ineffective. Experts warn that poorly timed token buybacks lead to inefficiencies and unrealized losses, diverting resources from innovation or growth.
However, as BeInCrypto reported, Messari cited factors like revenue growth and market narrative driving token prices instead.
Against this backdrop, the surge in the FET price comes as the buyback reflects growing confidence in the emerging ASI ecosystem. It aims to deliver a decentralized, interoperable foundation for AI applications.
The ASI-1 model aims to support autonomous agent workflows that operate across networks and data sources. This is a potential breakthrough in Web3 AI deployment, amid growing adoption of its large language model, ASI-1, and its agent platform.
The strategic alignment between the ASI platform’s utility metrics and capital deployment appears to resonate with the market, despite the skepticism toward buybacks in crypto.
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