The recent announcement by the Artificial Superintelligence Community regarding an “Earn & Burn” mechanism is a pivotal development for FET. This initiative aims to burn at least $50 million worth of FET tokens within the first year, significantly reducing the token supply.
By utilizing decentralized AI technology, this mechanism is expected to create substantial value for token holders. FET price is currently trading at $1.63 with a 9% increase over the last 24hrs.
The deflationary tokenomics associated with this mechanism are designed to enhance scarcity over time. As the supply diminishes, the potential for price appreciation increases, benefiting long-term holders. The community emphasizes that this burn will be matched with token utility, fostering a sustainable economic loop within the ecosystem.
The ASI protocol encompasses a variety of components that facilitate decentralized AI, including algorithm marketplaces, computing power, and agent technology. Users engaging with these components will pay in FET, generating revenue for the protocol. Notably, a portion of these fees will also contribute to the burn, with an estimated 35 million FET tokens projected to be burned in the first year.
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Technical Analysis Reveals FET Token Could Be on the Brink of Bullish Breakout
Crypro analyst Leo gave a technical front on his Xpost that the FET token is showing signs of a bullish breakout. Recent analyses show the formation of a Cup and Handle pattern, which is traditionally indicative of a bullish continuation.
The price has recently breached a descending trendline, signaling a bullish shift. If the price can break and stay above the resistance level at around $1.8, it may target a move towards $2.70, representing a potential upside of 50%.
While the price currently sits at $1.64 after a minor pullback, this could present a buying opportunity for traders looking to capitalize on the anticipated rally.
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The ASI team is actively pursuing strategic partnerships and innovations in the decentralized AI space, further bolstering confidence among investors. With a competent team responsive to community feedback, the foundation for sustained growth appears robust.
