Deep Dive
1. FheID Adoption Trajectory (Mixed Impact)
Overview:
Privasea’s FheID app added encrypted palm-scan verification in November 2025 (Privasea AI), complementing existing face recognition. The feature aims to reduce Sybil attacks while preserving privacy via FHE. With 240,000 users reported in October 2025, adoption metrics will hinge on Web3 platforms integrating FheID for KYC.
What this means:
Near-term sell pressure could persist as early airdrop recipients monetize rewards (120.9M PRAI allocated to marketing/airdrops). Long-term upside depends on converting users into stakers – the app’s staking feature went live in July 2025 but lacks public participation data.
2. Circulating Supply Risks (Bearish Impact)
Overview:
Only 27.99% of PRAI’s 1B supply circulates as of December 2025. Team (13%), backers (22.5%), and reserve (10.5%) allocations remain locked, per the tokenomics doc. Linear vesting schedules could gradually flood markets if demand lags.
What this means:
The $1.99M market cap leaves PRAI vulnerable to dilution – full circulation at current prices implies $7.14M sell-side pressure. Successful project milestones might absorb this, but weak network usage (e.g., DeepSea compute layer) could exacerbate declines.
3. Regulatory Tailwinds/Risks (Bullish Catalyst)
Overview:
The EU’s AI Act (effective 2026) mandates privacy-preserving AI in healthcare/finance – sectors Privasea targets. Partnerships like the telecom eSIM collaboration (July 2025) suggest enterprise traction, though revenue terms are undisclosed.
What this means:
Regulatory shifts could position PRAI as compliance infrastructure, but reliance on B2B deals (vs organic crypto demand) introduces execution risk. The 2025-2026 roadmap’s “global partnerships” metric will be critical.
Conclusion
PRAI’s price faces unlock pressures and adoption uncertainties, but regulatory and tech synergies offer asymmetric upside. Can DeepSea’s node network (90% WorkHeart USB activation per July 2025 data) transition from testnet hype to sustainable compute demand? Monitor quarterly burns/usage fees in 2026.