- Artificial Intelligence tokens experienced major declines fueled by Nvidia's massive stock loss.
- Nvidia received a subpoena from the Department of Justice (DOJ) for an antitrust investigation.
- TAO, ASI and RENDER experienced the highest declines in the past 24 hours.
Artificial Intelligence (AI) based cryptocurrencies declined in the Asian trading session on Wednesday, following reports of Nvidia (NVDA) wiping out $280 billion from its market capitalization. The downturn may be attributed to a subpoena issued to the chip manufacturing giant Nvidia from the US Department of Justice (DoJ).
AI tokens decline as NVDA could drop further on looming antitrust case
The general AI crypto sector witnessed harsh declines on Wednesday, taking a 10% dive and a $280 billion market cap exodus in Nvidia's stocks.
The sharp decline in NVDA may be attributed to the DoJ's subpoena to Nvidia regarding an antitrust investigation. The AI chip manufacturer joined the list of companies under the US government's watch list, as the investigation may be a major scare for investors.
An antitrust investigation is any investigation carried out by a governmental authority to enforce antitrust laws. The government puts these laws in place to regulate the conduct of organizations and prevent unjustified monopolies.
Several AI tokens gained on Monday following partnership deals and a general market recovery. However, the token category's close relationship with NVDA has sparked losses within the sector.
According to a post by The Kobeissi Letter on X, the DoJ is searching for evidence against Nvidia and several other AI chip manufacturers. With Nvidia currently controlling approximately 90% of the general AI market, this could negatively impact the AI crypto market.
The news of a subpoena could spread FUD and lead to further price declines of tokens within the sector. For example, several major AI tokens have begun to experience declines in the past few hours.
Bittensor (TAO), Artificial Superintelligence Alliance (FET) and Render (RENDER) were among the most heavily affected, with declines of 12%, 9% and 7%, respectively. Furthermore, Near Protocol (NEAR), The Graph (GRT) and Akash Network (AKT) are also down nearly 9% on the day.
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