Coinbase Opts Out of ASI Token Migration, Shakes Up User Strategy

Coinbase, a leading U.S. cryptocurrency exchange, has announced a significant policy regarding the upcoming token merger under the Artificial Superintelligence Alliance (ASI). The alliance, comprising AI-focused blockchain companies Ocean Protocol, Fetch AI, and SingularityNET, revealed plans in April for a token merger involving their respective tokens—OCEAN, FET, and AGIX. Despite the buzz around this consolidation, Coinbase has declared that it will not facilitate the token migration for its users.

This decision means Coinbase users who hold OCEAN and FET will need to navigate the merger independently. While the exchange will not migrate these tokens on behalf of its users, individuals can still proceed with the migration using Coinbase’s Prime Web3 wallet or another Ethereum-compatible self-custody wallet. Notably, Coinbase does not support the SingularityNET token AGIX, which explains its exclusion from the migration process on the platform.

Coinbase stated that it would continue to support trading for FET and OCEAN “until further notice.” However, the implications of how Coinbase will handle the FET token post-merger, as it absorbs OCEAN and AGIX, remain unclear, particularly since the exchange has opted out of supporting the migration directly.

Humayun Sheikh, CEO of Fetch AI, responded to Coinbase’s stance, affirming that the merger would proceed as planned and that Coinbase’s decision would not impact the union of the three tokens. The merger, initially set for June 13, has been rescheduled to July 1. Following the merger, FET will become the official token of the ASI, with OCEAN and AGIX being phased out.

The alliance also plans to rebrand the merged entity to the Artificial Superintelligence Alliance across platforms like CoinMarketCap and CoinGecko, adding potential layers of complexity and confusion for token holders. Furthermore, the alliance indicated that not all exchanges would immediately support the new arrangement, but integration would continue during the migration’s second phase.

This move by Coinbase mirrors its previous decisions regarding token actions, such as when it chose not to support the transition of GALA Games’ tokens during an airdrop last month, citing similar procedural and policy concerns.

As the ASI prepares for its new phase, users and investors must stay informed and possibly seek alternative arrangements to adapt to these changes in the cryptocurrency landscape.