Venice AI’s VVV Token Faces Turmoil Amid Insider Trading Allegations
The recently launched VVV token from Venice AI has experienced a dramatic downturn, plummeting by as much as 50% due to emerging allegations of insider trading. This news has significantly dampened the initial enthusiasm surrounding the product.
Venice AI debuted on Monday as an innovative AI platform operating on the Base network. It offers users access to China’s DeepSeek while prioritizing privacy. The token skyrocketed in market capitalization from $20 million at launch to an astonishing $1 billion shortly thereafter, largely due to its promise of providing private and uncensored AI inference without incurring per-request fees.
Additionally, the token was listed on Coinbase (COIN) on its very first day, a rare accomplishment that likely contributed to its meteoric rise. However, the excitement took a nosedive on Tuesday evening, following reports of insiders profiting immensely from the launch.
Two contributors affiliated with launch partner Aerodrome Finance reportedly acquired a substantial number of tokens shortly after the launch, before any public announcements were made. Their initial investment of $50,000 reportedly ballooned to $1 million in less than an hour, raising significant concerns within the community. See here for more details.
In response to the growing backlash from the community, Aerodrome took immediate action by suspending the two contributors involved. The team stated, “The timing of a small percentage of the trading activity around the $VVV launch was flagged by internal monitoring in less than 30 minutes – triggering an internal investigation.”
They further assured the community, “This investigation resulted in the suspension of two contributors within three hours of launch. We are continuing the investigation and will take all appropriate further action.”
