Fetch.ai is a blockchain-based decentralized machine learning platform, and its open-source software project aims to build infrastructure for developing modern, decentralized, and peer-to-peer (P2P) applications. Fetch.ai utilizes artificial intelligence and automation technology, providing various tools and frameworks for creating and connecting intelligent agents to perform complex tasks in the digital economy. Intelligent agents are autonomous software codes that can act on behalf of humans, organizations, or machines. The platform’s standout feature is the democratization of access to artificial intelligence (AI) through the creation of a permissionless network. Anyone can connect to this network to utilize and contribute datasets for autonomous AI operations. This setup is particularly beneficial for various domains, including DeFi trading services, transportation, and smart energy systems.

Fetch.ai’s network is a cross-chain protocol based on Cosmos-SDK, enabling advanced cryptographic and machine-learning logic on-chain. Fetch.ai also has its own token called FET, with a current circulating supply of 746 million and a maximum supply of 1.153 billion.

Core Technology

Fetch.ai protocol’s key aspect is integrating distributed ledger technology (DLT), machine learning (ML), and trust protocols to create an intelligent agent system. This system allows for dynamic, automated, and efficient transaction networks, incentivizing disintermediation and direct exchanges between economic agents. The Fetch protocol aims to lower transaction and contract costs and shorten delivery times, opening up the potential for emerging markets based on the immediacy and granularity of service delivery.

Key features include:

Autonomous Economic Agent (AEA) architecture: A distributed intelligent agent architecture for building autonomous collaborative intelligent agent networks. AEA stands for Autonomous Economic Agent, which is a digital entity capable of autonomously executing tasks such as data collection, negotiation, or trading based on its environment and market conditions. AEAs can represent services, individuals, or devices. The core idea is to combine artificial intelligence and blockchain technology to build a decentralized intelligent economy, enabling intelligent, autonomous, and decentralized economic interactions.

Open Economic Framework (OEF): OEF, short for Open Economic Framework, is a space where Autonomous Economic Agents (AEA) interact with each other to search, discover, communicate, and trade. The virtual environment defined by OEF provides APIs for AEAs, which can be either free or paid, with payments made in FET tokens. For example, if an AEA with the code 001 possesses certain data (data provider), it can declare its ownership of the data in the network. Another AEA with code 002, in need of this data for machine learning purposes, can search for and purchase the data from AEA 001 in the network, facilitating trade and utilizing it for machine learning.

Smart Ledger: Fetch.ai utilizes a high-speed, scalable blockchain that enables secure and decentralized coordination of a large number of transactions and interactions among agents.

Machine Learning and Artificial Intelligence: The platform integrates artificial intelligence and machine learning technologies to support predictive analytics, decision-making, and intelligent agent behaviors.

FET token

The FET token is an essential part of the Fetch.ai ecosystem, serving as the primary medium of exchange to facilitate transactions between agents, agent deployments, compensation for services provided, and other operations. As of the latest update, the price of the FET token is approximately $0.289, with a market capitalization of around

$243,346,673. The 24-hour trading volume for FET is approximately $30,949,090. Out of a total supply of 1,152,997,575 FET, there are 840,755,479 FET in circulation, resulting in a fully diluted market capitalization of $333,721,4349.

FET plays crucial roles within the Fetch.ai network, including:

Transaction Fees: FET is used to pay transaction fees on the Fetch.ai network, covering costs associated with deploying and executing smart contracts, conducting transactions, and interacting with the network.

Staking: Participants in the Fetch.ai network can stake FET tokens to participate in network security and governance. Staking FET may qualify holders for rewards distributed to help protect the network, validate transactions, and maintain overall platform integrity.

Access to Resources: FET tokens can be used to access or purchase resources within the Fetch.ai ecosystem. This includes acquiring computational power, data, and other digital assets or services provided by Autonomous Economic Agents (AEAs) on the platform.

Governance: FET holders may also have governance rights, allowing them to vote on proposals that influence the development and direction of the Fetch.ai network. This includes decisions regarding protocol changes, network upgrades, and deployment of community funds.

Token Distribution: As depicted in the following chart, approximately 1.04 billion FET tokens are currently in circulation, with the current circulating market capitalization approximately $2.46 billion, accounting for around 90% of the total token supply. The current price is $0.236, with a circulating market capitalization of approximately $2.47 billion.

Token fundraising: As shown in the figure below.

Token Distribution: Currently, the FET token exists on three chains: Ethereum, BSC, and Fetch, with Ethereum being the main chain. According to blockchain explorers, over 25% of FET (Ethereum + BSC) is held on the Binance exchange, indicating a relatively dispersed on-chain distribution of tokens.

Profit and Loss Ratio: Based on on-chain data, over 91% of holding addresses / over 98% of on-chain tokens are in a profitable state. Since more than 30% of FET is held on exchanges rather than independently on-chain addresses, this data should be considered as a reference only.

Team / Cooperation / Funding

The Fetch development team mostly consists of graduates from prestigious universities or individuals with backgrounds in Fortune 500 companies, all of whom are experts in the fields of AI or algorithms.

Humayun Sheikh: CEO and Co-founder, an early investor in Deepmind, founded itzMe in 2014 and uVue in 2016, both of which were machine learning and AI-driven blockchain networks focusing on the drone sector. Created Fetch.ai in August 2017 and the DEX Mettalex using Fetch in June 2020.

Fetch has numerous partners, mainly in the areas of IoT and AI. These partners include global leading traditional companies such as Bosch, Festo, Telekom Innovation Laboratories, Datarella, and Yoti, as well as star blockchain projects like IOTA and Conflux, and medical companies and institutions like GE Healthcare, Pfizer, and the Poznan Supercomputing and Networking Center in Poland. Additionally, Fetch has joined organizations such as the European Blockchain Alliance (with members including Ripple, NEM, and Cardano), the MOBI Alliance (with members including BMW, Ford, and General Motors, as well as consulting firms like Accenture and IBM), and the Warwick Business School.

In terms of funding, in March 2021, the Toronto-based digital asset company GDA Group invested $5 million. In March 2022, Fetch launched a $150 million development fund to encourage developers to build projects on its ecosystem, with MEXC Global leading the investment, and Huobi and Bybit participating. In March 2023, Fetch received a $40 million investment from DWF Labs, which will be used to deploy decentralized machine learning, autonomous agents, and network infrastructure. On April 28, 2023, in a corporate financing round, Fetch raised €91 million, led by Bitget.

Current situation and future prospects

Fetch.ai started off complex and niche, making it challenging for people to grasp its utility. After its initial price surge in 2019, Fetch.ai went through a period of stagnation. However, following the bull market in 2021, the project saw a significant resurgence. It initially piqued community interest with over 1000% gains. Since then, Fetch.ai has experienced several peaks and valleys, with the recent Bitcoin price surge pushing its value close to the $0.50 mark.

The previous price spikes of FET can also be attributed to the launch of the new AI economic open platform, DeltaV. Fetch.ai’s AI agents support this search-based AI chat interface, which can comprehend written conversations and provide relevant answers. Besides featuring a user-friendly interface and precise responses, DeltaV also allows users to register any AI services they wish to profit from.

Currently, the project faces challenges primarily related to its technical complexity. It requires ongoing research and development investment and innovation to maintain its leading position. Additionally, widespread education and improving user acceptance are significant challenges. Furthermore, competition from other blockchain and AI projects in the market could pose a threat to Fetch.ai. Continuous innovation and differentiation are key to maintaining competitiveness. Moreover, the uncertainty in the global regulatory environment may impact Fetch.ai’s development, especially concerning cross-border transactions and digital asset regulation.

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