Venice AI’s newly launched VVV token, which grants private access to DeepSeek R-1, has surged to a total value of $1.6 billion, despite volatility in its fully diluted valuation (FDV).
Background
- Venice AI, a privacy-focused artificial intelligence platform founded by Bitcoin advocate Erik Voorhees, launched its VVV token on Ethereum’s layer-2 Base network on Jan. 27.
- Within just two hours of its debut, the token’s FDV soared past $1 billion, according to DEXScreener.
- As of today, VVV’s FDV sits at approximately $754.1 million, with a market capitalization of $225.2 million.
- The total supply of VVV is 100 million tokens, with 25 million already circulating among over 43,000 holders
- Aerodrome Finance, a decentralized exchange on Base, suspended two contributors over trading activities related to VVV
Why should you pay attention?
- AI and Blockchain Convergence – Venice AI integrates privacy-preserving AI with decentralized finance, offering users uncensored access to generative text, images, and code
- DeepSeek Controversy – DeepSeek R-1, the AI model supported by Venice AI, has been compared to ChatGPT, but concerns over data privacy have emerged, especially regarding user data potentially being sent to China
- No Presale, No Governance – Venice did not conduct a presale or offer governance mechanisms, a rare approach in the DeFi and AI token space
- Airdrop and Tokenomics – Venice distributed 25 million tokens to 100,000 Venice users and another 25 million to Base ecosystem participants, including holders of Aerodrome Finance and Virtuals Protocol (VIRTUAL) tokens
Who said what?
- Venice AI Team, on X:
“Any AI agent or builder who stakes VVV receives free ongoing inference access to the Venice API, for private and uncensored generative text, images, and code.”
- Erik Voorhees, addressing DeepSeek’s privacy concerns:
“When you use DeepSeek through the http://Venice.ai app, none of it is going anywhere.”
- Aerodrome Finance, after suspending two contributors for trading VVV:
“We take integrity seriously and have taken immediate action regarding the situation.”
Zooming out
- Venice AI’s rapid rise in valuation showcases the growing demand for AI-integrated blockchain projects, despite ongoing regulatory uncertainties.
- The DeepSeek R-1 controversy highlights broader concerns about AI data privacy and international security risks, especially when linked to China-based firms.
- Venice’s tokenomics and airdrop strategy have fueled interest, but skepticism remains around token distribution and sustainability.
