Venice AI’s VVV token experienced a sharp decline of up to 50% following insider trading allegations, which dampened the initial enthusiasm surrounding the highly anticipated launch.
Venice AI, launched on Monday, is an AI platform built on the Base network that provides users with access to China’s DeepSeek while ensuring privacy. The project quickly skyrocketed to a $1 billion market cap, starting from a modest $20 million, due to its appeal of offering private, uncensored AI inference without the usual per-request fees.
The token also saw a boost from being listed on Coinbase (COIN) on its debut day—an unusual feat for newly launched assets. However, sentiment took a sharp turn on Tuesday evening after reports surfaced of alleged insider trading during the token’s initial moments on the market.
Two contributors from Aerodrome Finance, a launch partner of Venice AI, reportedly acquired a significant amount of VVV tokens shortly after the platform went live—before any public announcements were made. Their position reportedly surged from $50,000 to $1 million in under an hour.
In response to growing community concerns, Aerodrome Finance suspended the two individuals involved. The team clarified that the suspicious trading activity was detected within 30 minutes of the launch, prompting an internal investigation. They assured the community that appropriate actions would be taken based on the findings.
“We are continuing the investigation and will take all necessary further action,” the Aerodrome team stated.
