What Is Fetch AI Crypto and Is It Any Good as an Investment

Published: 26th March, 2024 | Last Updated: 30th May, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this post, I will explain what Fetch AI is and how it works. I will then evaluate it across four dimensions to decide whether to invest in it. To do this I will look into the project’s Team, Product, Tokenomics, and Momentum. 

What is Fetch AI

Fetch AI is a blockchain platform that uses artificial intelligence to help users automate tasks such as booking a restaurant, finding a parking space, or booking a vacation. You can think of the end service as being a ChatGPT except that instead of you asking it for information it also executes tasks for you. Why doesn’t ChatCPT do that? It will eventually but Fetch.AI will have multiple ChatGPT equivalents and they will all talk to each other and won’t belong to a centralized conglomerate such as Microsoft. 

What problem does Fetch AI solve?

Think of it like this: the world is complex. Super complex. Imagine you are living in a smart city in the near future. You’ve got self-driving cabs, smart energy grids, parking spaces, charging stations, dustbins that know if they are full or empty, drones doing deliveries, etc. All of these machines work autonomously with little involvement from humans. Yet the companies and organizations that operate the Internet of Things are siloed off from each other. How do these systems find each other and interact with each other? How do they exchange value and engage in economic transactions? 

This is where Fetch.ai comes in. Fetch allows anyone to build an agent on top of its platform. This agent is a program that acts like your digital twin to speak to machines and service providers and accomplish the tasks you set. Today if you want to book a holiday you need to research on Google, compare flights and prices, choose a hotel or Airbnb room, plan activities and tours, and so on. In the future Fetch.ai envisions all of these actions will be taken care of by autonomous software agents.

The best analogy is to think of Fetch as Google for AI services. Fetch.ai. want to democratize AI through its AI agents. 

Fetch AI agents

A fetch agent will be able to

  • Transact and negotiate on your behalf
  • make predictions using machine learning models and other AI capabilities.
  • Collaborate and communicate with Fetch.ai’s network of autonomous economic agents

Here is a sample list of projects that use a Fetch.ai project. You can find various use cases on Fetch.ai’s integrations page.

  • pdf.ai: PDF summarization
  • London Transport Journey Planner
  • AI Web Scraper and Summarizer
  • Live Sports Score
  • Live Flight Status
  • EV charger integration

Fetch.ai components

There are three key components you should know about:

  1. AI agents: These are programs that can interact with other agents in a decentralized manner. For example, if you were a logistics company you could build agents for supply chain optimization such as demand forecasting and inventory control using AI
  2. Agentverse: a cloud-based platform for hosting, testing, and deploying agents
  3. AI Engine and DeltaV: Allows agents to use human-readable text using Large Language Models (LLMs). LLMs are the same technology that powersChatGPT and Google’s Gemini. This helps translate human input into useful data so that the AI Engine can connect you to the appropriate agent. For example, if you ask what the weather is like one agent might fetch your location coordinates while another fetches the weather forecast for those coordinates.

The Fetch blockchain

The fetch.ai network uses its own layer 1 blockchain built using the Cosmos SDK known as the Fetch Ledger. This means that the Fetch.ai blockchain uses a proof of stake consensus mechanism. Validators who wish to participate in adding new blocks are required to stake FET tokens. Cosmos is considered a robust blockchain technology platform that is highly regarded in the crypto community. Using Cosmos means that Fetch.ai can also speak to other blockchains using the inter-blockchain communication (IBC) bridge. You can find out more about the Cosmos ecosystem here. 

The FET COIN

Fetch.ai’s native token, FET,  is a utility token that allows fetch.ai users to pay for fetch compute credits and network transaction fees. The token has a maximum supply of 1.15 Billion and a circulating supply of 840Mn. 

FET Token allocation

  • Founders and team: 20%
  • Foundation: 20%
  • Future release: 17%
  • Mining rewards: 15%
  • Advisors: 10%
  • Private round via the Binance Launchpad: 6%

Source: cryptorank.io

Is Fetch.ai a good investment? 

To answer this I used my methodology which scores projects across four dimensions: Team, Product, Tokenomics, and Momentum. Let’s take a closer look.

Team

1. Are the founders legit with related experience?     ✔️    

The Fetch.ai team is of high caliber. While there is relatively little information on Humayun Sheikh, the CEO of Fetch.ai the rest of the team has impressive experience. For example Toby Simpson, the ex-COO who sits on Fetch’s advisory board used to head Software design at Deep Mind, the company that was acquired by Google for its AI technology. 

Fetch.ai founders
Thomas Hain and Humayun Sheikh, founders of Fetch.ai

2. Have they built Web 3 projects before?    ✔️    

Many of the software engineers and other staff have blockchain and/or AI experience as well. 

3. Did they do an exit?    ❌    

No

4. Can you find legit profiles on LinkedIn?    ✔️  

Yes

5. Did they raise funds?    ✔️  

Yes they raised over $70Mn from the likes of Outlier Venture Partners, Next Ventures, Mustafa Korkmaz, Spark Digital Capital, GDA group, and others

6. How long have they been around?    ✔️    

Since 2018

7. Public appearances through Interviews/podcasts    ✔️  

Yes, the CEO, CTO, and others speak in interviews and podcasts frequently

Overall team score: 95%

Product

1. Is it easy to understand what they do?     ❌

Not that easy

2. What is it?    –    

A blockchain that uses AI to automate tasks

3. Is there a demand for their product?     ❌

There is a demand for AI services. Whether people care about access to Fetch’s democratized version remains to be seen. 

4. Is there a use case?    ❌

I am not sure I understand it

5. How big is the market?    ✔️    

It’s big

6. Is it being used?     ✔️    

66K wallets according to Glassnode

7. Github activity    ✔️    

More than 1600 autonomous agents are registered on agentverse.ai. with a high volume of interactions

8. Has the product launched?    ✔️

Yes, the blockchain is live with multiple agents deployed. 

9. Does it have a strategic moat?     ❌    

No

10. Is it focused?    ✔️

Yes it is centered on doing one big thing

11. Is the website easy to understand for non-crypto visitors?    ❌    

No, you need to be a crypto and AI native

12. Do they have a proof of concept?    ✔️    

Yeah many agents are live

13. Is the UX good?     ❌

No, I am unable to use any of the agents. They are mostly on Github, Not much I can use as an end user yet.

14. Is it already being done?     –    

Many DePIN AI companies out there. I didn’t find any company that does exactly what Fetch is doing

15. At what stage is the product?     –    

Launched

16. How does it create value?     –    

Makes it easy for developers to build AI apps that integrate with one another

17. How does the project generate revenue?    –    

Gas fees and token rewards for validators. I imagine the foundation can charge for licensing and consulting fees. 

Overall product score        30%

Tokenomics

1. Why is the coin valuable?    ✔️    

You need FET to launch and use an agent.

2. Did they do a pre-mine?    –    

No info

3. Is supply fixed or inflationary?    –    

Fixed

4. Was it a fair launch    –    

Not sure

5. Circulating / total supply    ✔️    

72%

6. Token release schedule    ✔️    

91% of tokens are unlocked.

7. Are there incentives to reduce or lock supply?    ✔️    

Yes, staking

8. How many tokens    ✔️    

Only FET

9. How much upside is left: market cap vs industry size    ✔️    

$2.5Bn vs many Bns

10. Is it listed on top crypto exchanges    –    

Yes it’s listed on all of the major exchanges

Overall tokenomics score: 100%

Momentum

1. Is it trending on social media?    ✔️    

Yes it dominates social media

2. Is the market cap low compared to similar projects?    ✔️    

When comparing AI crypto tokens CoinGecko shows that FET is only surpassed by TAO ($4.3Bn market cap) and RNDR ($4Bn market cap).

3. What is the crypto market like?     ✔️    

Bulls are in charge

4. What is the sentiment for the sector this crypto focuses on    ❌    

AI is very hot in crypto these days

Overall momentum score: 80%

Should I invest in FET? 

With its limited supply, strong tokenomics, and momentum FET looks like a good candidate to invest in. Moreover, the team has excellent credentials. However, I still have questions concerning how much demand there is for the product. With the FET price being at an all-time high I am wondering how much more room there is for growth. Personally, I am not taking a position. Remember none of this is financial advice and please make sure you do your own research.

References

Up Next

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Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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