Fetch.ai (FET) stands at the forefront of the convergence between artificial intelligence and blockchain technology. With its innovative use of autonomous agents and a robust decentralized network, FET has emerged as a leading player in the AI crypto space. This comprehensive guide explores the origins, technology, tokenomics, and real-world applications of Fetch.ai, while also diving into advanced trading strategies for FET options on PowerTrade—including volatility plays, income generation, and risk management techniques.
Origins and Launch of Fetch.ai (FET)
Fetch.ai was co-founded in 2017 by Humayun Sheikh—an early investor in DeepMind—alongside Toby Simpson and Thomas Hain. The project was born from a vision to create a decentralized machine learning network powered by autonomous agents capable of performing complex tasks without human intervention.
The team launched Fetch.ai through an Initial Exchange Offering (IEO) on Binance Launchpad in February 2019, raising $6 million and selling approximately 69.2 million FET tokens at $0.0867 each. This successful debut positioned FET among the first major AI-focused cryptocurrencies to enter the market.
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The mainnet went live in January 2020, marking the beginning of a fully functional ecosystem where AI agents could interact, negotiate, and execute tasks across industries like finance, logistics, energy, and smart cities. CEO Humayun Sheikh emphasized that the goal was always to democratize access to AI, enabling anyone to deploy and monetize AI services through autonomous agents on a decentralized infrastructure.
Rooted in the UK tech ecosystem and backed by AI researchers and blockchain developers, Fetch.ai set out with a bold mission: to unlock idle data and services by allowing them to "sell themselves" in peer-to-peer marketplaces.
Core Technology: Autonomous Agents and the Smart Ledger
At the heart of Fetch.ai’s architecture are three foundational components that enable a truly decentralized digital economy.
Autonomous Economic Agents (AEAs)
These AI-powered software entities act on behalf of users, devices, or organizations. AEAs can discover one another, negotiate deals, process information, and execute transactions autonomously. They continuously learn from interactions, improving efficiency over time—making them ideal for use cases like dynamic pricing, route optimization, or automated DeFi trading.
Open Economic Framework (OEF)
The OEF serves as a discovery and coordination layer where agents find relevant services and data sources. It enables seamless communication by providing contextual metadata such as location, availability, and pricing. Nodes supporting the OEF are rewarded in FET for facilitating agent interactions.
Fetch.ai Smart Ledger
Built using a hybrid of blockchain and Directed Acyclic Graph (DAG) technologies, the Fetch.ai ledger supports high throughput and scalability. Sharding allows parallel processing of agent transactions, while WebAssembly (WASM)-based smart contracts enable complex logic execution. This combination ensures fast consensus and efficient handling of microtransactions across a growing network of agents.
Together, these systems form a self-sustaining digital economy where data, computation, and services are exchanged peer-to-peer—powered entirely by FET.
FET Tokenomics: Supply, Distribution, and Utility
As of May 2025, FET has undergone significant evolution due to its integration into the Artificial Superintelligence (ASI) Alliance, which merged SingularityNET (AGIX) and Ocean Protocol (OCEAN) into the Fetch.ai ecosystem. This triple-token merger increased the total supply to approximately 2.7 billion FET, with over 96% already unlocked.
Token Distribution Overview
- 67% allocated to founders, foundation, advisors, and early investors
- 17.4% reserved for future ecosystem incentives
- 15% distributed as staking and validation rewards
Despite initial concentration—where the top 10 wallets hold nearly 80% of circulating supply—the integration of AGIX and OCEAN holders is gradually broadening ownership distribution.
Currently, about 78% of FET is in circulation, with minimal future unlocks expected. This reduced supply overhang enhances investor confidence, especially as whale accumulation trends show increasing institutional interest.
Key Use Cases and Benefits of FET
The FET token is essential to every operation within the Fetch.ai ecosystem:
- Payment for Services: All agent interactions require FET for service access, data queries, or infrastructure usage.
- Gas Fees: FET powers smart contract execution and agent registration on the network.
- Staking Rewards: Over 400 million FET are staked annually, securing the PoS network and offering passive income to holders.
- Data Incentivization: Users earn FET by sharing data or computational resources via their agents.
- Governance Potential: Future upgrades may allow FET holders to vote on protocol changes within the ASI Alliance.
- Reputation & Access: Holding or staking FET could grant priority access or enhance agent credibility.
With the ASI Alliance merger, FET now inherits functionalities from both SingularityNET’s AI marketplace and Ocean’s data exchange—making it a one-stop utility token for decentralized AI.
Challenges and Risks
While promising, FET faces several hurdles:
- Limited Adoption Outside Ecosystem: FET is primarily used within Fetch.ai’s network, restricting broader utility.
- Market Skepticism: Some investors remain cautious about AI-themed tokens amid hype cycles.
- Centralization Concerns: High holder concentration raises governance and liquidity risks.
- Competition: Projects like Bittensor (TAO), Render Network (RNDR), and The Graph (GRT) offer overlapping capabilities.
- Regulatory Uncertainty: As AI and blockchain intersect, regulatory scrutiny may increase.
However, ongoing partnerships and ecosystem growth continue to strengthen FET’s long-term viability.
What Sets Fetch.ai Apart?
Fetch.ai distinguishes itself through:
- A focus on autonomous economic agents, not just smart contracts.
- Proprietary blockchain-DAG hybrid ledger with WASM support.
- Versatility across sectors—from DeFi to IoT automation.
- Leadership in forming the ASI Alliance, unifying three major AI crypto projects under one token.
- A clear mission to challenge centralized AI giants like Google and Amazon with open-source alternatives.
This unique blend of technology, vision, and collaboration positions FET as a foundational layer in the emerging decentralized AI economy.
Community Growth and Real-World Impact
Fetch.ai’s ecosystem has expanded rapidly:
- Over 130,000 active wallets
- More than 24 million on-chain transactions
- 25+ global hackathons in 2024 alone
- Partnerships with Deutsche Telekom (T-Labs), Cudo Compute, and Chainlink
- Pilot programs in smart parking, EV charging optimization, and peer-to-peer energy trading
With strong developer engagement (1,000+ GitHub contributors) and growing corporate validation, Fetch.ai is transitioning from concept to real-world implementation.
Major Competitors in the AI Blockchain Space
While Fetch.ai leads in agent-based automation, it competes with:
- Bittensor (TAO): Decentralized machine learning training
- Render Network (RNDR): GPU compute for AI rendering
- The Graph (GRT): Blockchain data indexing
- Numerai (NMR): Crowdsourced financial modeling
Yet, by absorbing SingularityNET and Ocean Protocol into its ecosystem, Fetch.ai has eliminated two direct competitors—giving it a significant edge in scope and user base.
Trading FET Options on PowerTrade: A Strategic Advantage
Beyond fundamental value, FET offers compelling opportunities in derivatives markets—especially on PowerTrade, a leading platform for altcoin options.
Why Trade FET Options?
Options provide superior risk control compared to spot or perpetuals:
- Defined Risk: Maximum loss is limited to the premium paid.
- No Liquidation Risk: Unlike leveraged perps, long options cannot be margin-called.
- Built-in Leverage: Small premiums control large notional exposure.
- Volatility Plays: Profit from big moves regardless of direction (e.g., straddles).
- Income Generation: Sell premium during sideways markets (e.g., iron condors).
- Hedging Tool: Protect long positions with puts or collars.
PowerTrade FET Options: Contract Specifications
- Type: European-style, USD cash-settled
- Contract Size: 1 FET per contract
- Settlement: Automatic at expiry; payout in USD
- Expiry Times: Weekly, monthly, quarterly—and even 0DTE options
- Trading Hours: 24/7
- Liquidity: Deep order books with tight spreads
- Fees: Currently zero fees on options trades
With expiries ranging from intraday to mid-2025+, traders can tailor strategies precisely to market events.
Advanced Strategies for FET Options
Single-Leg vs Multi-Leg Approaches
Simple directional bets (buying calls/puts) work well for clear bullish or bearish views. But multi-leg strategies unlock nuanced advantages:
Straddles & Strangles
Ideal before major announcements (e.g., ASI milestones). Buy both call and put to profit from large swings—direction agnostic.
Iron Condors & Butterflies
Sell premium when expecting low volatility. Collect income if FET stays within a range. Risk is capped with protective wings.
Calendar Spreads
Bet on changing volatility over time—sell near-term options, buy longer-dated ones. Useful ahead of known future events.
Risk Reversals
Create synthetic long/short exposure with minimal upfront cost by selling one option to fund buying another.
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PowerTrade’s RFQ (Request-for-Quote) system enables instant pricing for complex multi-leg trades—even for small accounts—ensuring fair execution without slippage.
Options vs Perpetuals vs Spot: When to Use Each
| Instrument | Best For | Risks |
|---|---|---|
| Spot | Long-term holding, staking | No leverage; exposed to full downside |
| Perpetuals | Short-term directional trades | Liquidation risk; funding fees |
| Options | Volatility plays, hedging, income | Time decay; requires strategy |
For example:
- Use options to hedge before token unlocks.
- Use perps for quick momentum trades.
- Use spot for core portfolio allocation.
Combining all three offers maximum flexibility.
Practical Use Cases for FET Options
- Hedging Before Token Unlocks
Buy puts to protect gains during vesting releases. - Speculating on Bullish Catalysts
Buy calls ahead of exchange listings or product launches. - Earning Yield in Sideways Markets
Sell iron condors when implied volatility is high but price action is flat. - Event Arbitrage
Deploy straddles before ASI Alliance votes or developer conferences. - Systematic Portfolio Management
Sell cash-secured puts to buy low; sell covered calls to sell high—with extra premium income.
FET’s history of sharp rallies followed by consolidation makes it ideal for these tactical approaches.
Frequently Asked Questions (FAQ)
Q: What is Fetch.ai (FET) used for?
A: FET powers autonomous agents that perform tasks like data sharing, DeFi trading, logistics optimization, and more—all without human input.
Q: Is FET a good investment?
A: With strong fundamentals, growing adoption, and integration into the ASI Alliance, FET presents long-term potential—though price volatility remains high.
Q: Can I stake FET?
A: Yes. Over 400 million FET are staked annually, earning validators rewards in new issuance and fees.
Q: Where can I trade FET options?
A: PowerTrade offers deep liquidity for FET options with zero fees, multiple expiries, and advanced tools like RFQ.
Q: How does FET differ from other AI cryptos?
A: Fetch.ai uniquely combines autonomous agents with custom ledger tech and has absorbed two key competitors via the ASI Alliance—giving it unmatched scope.
Q: Are there risks in trading FET options?
A: Yes—time decay erodes option value. However, defined risk profiles make them safer than leveraged perps.
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