TLDR
- Venice token (VVV) faced intense scrutiny when insiders allegedly dumped $10.2M worth of tokens shortly after launch.
- Price crashed 63% in two weeks, from $19.38 to $2.44
- Sixteen wallets linked to the Venice team’s multisig configuration secured tokens ahead of the official launch.
- Market influencers Wintermute and Kbit were allocated 5.5% of the total token supply.
- Erik Voorhees affirmed that the launch conditions were transparently communicated.
Positioned as a rising AI contender in the crypto scene, Venice was thrust into controversy over alleged early sales worth millions. The initiative, brainchild of Bitcoin advocate Erik Voorhees, unveiled the Venice token (VVV) recently, quickly drawing scrutiny over potential early trading layers. Castle Labs’ onchain expert Amir Ormu presented studies showing sixteen wallets linked to a multi-signature wallet of the Venice team receiving tokens four days prior to the public debut. As analyzed by Ormu, these wallets held 23% of the overall token pool.
Scrutinizing the team wallets, their clusters were identified.
. @AskVenice team has sold over $10.2M in $VVV tokens…
I\"ve tracked all the $VVV These wallets acquired tokens four days in advance and executed large trades immediately post-launch.
A deep dive into the Venice token’s price reveals a dramatic narrative. From soaring to $19.38 right after its launch, the value nosedived. By the start of February, it plummeted to $2.44—a staggering 63% collapse in just under two weeks, according to Coin Market Cap.
And Coinbase launched it day on 1?
Wallets + Proof 🧵 pic.twitter.com/breAefIGXX
— Amir Ormu (@AmirOrmu) February 1, 2025
Venice touts itself as a privacy-centric AI chatbot, bolstering its prowess with open-source language models like Llama and Deepseek. Launched on the Base network, it aims to support crypto AI agents, which are increasingly gaining traction.
The project's official token structure reserved 35% of the 100-million-total token pool for internal allocations. Of this segment, 10% went to the team, with an immediate 25% availability, with the remainder outlining a two-year distribution.
In his response to the allegations, Erik Voorhees emphasized the venture’s open communication. He remarked, ''The disclosure blog articulated the token terms unambiguously. Approximately 2.5% of the supply was eligible for sale... Merely a fraction of that 2.5% was actually transacted. This was all shared upfront.''
Ormu’s research shed further light on the distribution phases. Market facilitators Wintermute and Kbit obtained 5.5% of the VVV token amount. This coincided with Venice’s strategy of allocating 10% to market facilitators, yet Ormu voiced apprehensions over Wintermute’s trading maneuvers.
Ormu’s analysis claimed Wintermute liquidated its holdings before the tokens reached centralized trading platforms. ''Wintermute was offloading tokens ahead of any CEX inclusions, disqualifying the argument of market facilitation—it was blatant dumping on DEX platforms,'' Ormu elaborated.
The rapid adoption of VVV on Coinbase has caught the eye of market watchers. This phase hit amid Coinbase's CEO Brian Armstrong's acknowledgment of the company handling up to a million token listing inquiries weekly.
All token transfers transpired over accessible blockchains, enabling monitoring and scrutiny. Voorhees underlined this, stating, ''The genesis addresses were transparent, and the entire sequence is traceable onchain.''
Setting its mark as an AI-driven innovation in the cryptocurrency sector, Venice prioritized privacy and anti-censorship measures, which initially captivated investors and traders within the crypto circle.
Market insights reveal the token’s trading surge in its opening day coincided with the period where reported sales emerged. This chronology fuels ongoing discourse surrounding the token's rollout.
Venice token’s distribution adhered to a predefined plan, earmarking various allocations for purposes like development, marketing, and ecosystem expansion. The team’s share was merely one segment of this broader strategy.
A granular blockchain review corroborates token transitions from initial distribution addresses to several exchanges and decentralized contingency facilities. These exchanges unfolded within the first week of the token’s lifespan.
Latest statistics signify the token’s continued presence across multiple exchanges, maintaining price equilibrium at lesser levels than its initial launch. Although trading frequencies have lessened from their initial zenith, they retain steady engagement across diverse platforms.
Editor-in-Chief of Blockonomi and founder of Kooc Media, a UK-based digital media entity. A staunch advocate for Open-Source Software, Blockchain Technology, and a liberated, equitable internet for all.
