Wed, 31 Jan 2024 | BUSINESS SALE
Fetch.ai, an AI and cryptocurrency tech firm, has been acquired out of administration by its founders. The Suffolk-based company fell into administration last week, appointing administrators from ReSolve, and has now been acquired by Assmbl.ai, a consortium comprised of its founders.
The company is behind the FET crypto token, which is reported by industry publication CoinMarketCap to generate around $50 million in daily trading volume, with a market cap of more than half a billion US dollars.
FET, which was launched in 2017, powers Fetch.ai’s “internal economy”. According to the company, users of Fetch.ai spend FET in order to “consume services within the platform”. Fetch.ai provides users with a platform to build autonomous “AI agents” or “digital twins”, which can be used to automate online tasks, interacting and transacting with a wide range of online apps and services.
The site also enables users to stake their own FET tokens for input into the governance and strategic direction of the platform, with users who stake their own FET earning interest at an annual variable interest rate of 10 per cent.
However, the company has seemingly been heavily impacted by the turbulence in the crypto market over recent years. In its most recent accounts, the company reported a loss of £16.7 million, while the value of its assets was written down by more than £230 million after the value of FET plunged between 2021 and 2022.
According to the company’s advisors, it ran into financial difficulties towards the end of last year, leading to the appointment of administrators as it sought “to find urgent rescue capital or to secure a sale of the shares, business and/or assets.”
Following the sale to Assmbl.ai, joint administrator and ReSolve partner Ben Woodthorpe said: “After a wide marketing campaign, we are pleased to have achieved a sale of the business and assets of Fetch.AI, which is in the best interests of the creditors.”
“With the rapid developments currently taking place in the world of artificial intelligence, there is great scope for the business to thrive over the coming years.”
According to a statement from the company, the move is part of a restructuring plan, which aims to shift the firm’s operations to Dubai. It is understood that the FET token is not owned by the company and, as a result, will not be directly impacted by the administration.
Find out about other UK companies that fell into administration over the past week
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