Decentralized AI Tokens Surge After Anthropic Model Restrictions Spark Demand for Permissionless Alternatives

Tokens linked to decentralized artificial intelligence projects posted strong gains after Anthropic suspended access to its newly launched Fable 5 and Mythos 5 models following a U.S. government directive.

Venice’s VVV token climbed about 14% over 24 hours to $16.37, after reaching a daily high of $17.66. Trading activity also surged, with volume jumping nearly 200% to around $130 million. Morpheus’ MOR token gained approximately 21% to $2.28, although trading volume remained relatively modest at just under $300,000.

The market reaction followed an export-control order that required Anthropic to suspend access to its latest AI models for foreign nationals. In response, the company disabled both Fable 5 and Mythos 5 for all users while continuing to operate its other models.

Decentralized AI Projects Promote Censorship Resistance

Supporters of decentralized AI platforms quickly pointed to the shutdown as evidence of the advantages of permissionless and censorship-resistant systems. Venice founder Erik Voorhees highlighted the incident as a reason behind the platform’s development, while the Morpheus community described decentralized AI as an alternative that cannot be easily restricted by government action.

AI Regulation Debate Expands

Anthropic introduced Fable 5 on June 9 as its first publicly available model in the advanced Mythos-class category. The company said the government’s concerns centered on a specific method that could bypass existing safety protections and argued the issue was being misunderstood.

The development has also renewed discussion about AI’s growing role in cybersecurity. Advanced models are increasingly capable of identifying software vulnerabilities, raising concerns among regulators while creating new opportunities for security researchers.

Future of Permissionless AI in Focus

Supporters view the recent restrictions as a major validation of decentralized AI, the long-term impact remains uncertain. Anthropic has stated it is working to restore access and plans to provide additional information, leaving investors watching closely to see whether the momentum behind permissionless AI platforms continues.