Venice AI, an innovative artificial intelligence platform emphasizing user privacy, has generated significant buzz following the launch of its token, VVV, on the Ethereum layer-2 network called Base. Founded by Bitcoin enthusiast Erik Voorhees, the platform witnessed its token achieve an impressive fully diluted valuation of $1 billion in just two hours after its debut.
Token Launch and Valuation
The Venice Token, identified by the ticker VVV, hit this remarkable valuation shortly after 6 PM UTC on January 27, about ninety minutes post-launch, as reported by DEXScreener. Currently, the token boasts a fully diluted valuation of approximately $1.65 billion, alongside a market capitalization estimated at $306.4 million. To date, 25 million of the total 100 million VVV tokens have been released to the public, and according to data from Basescan, over 13,200 individuals currently hold the token.
Incentives and API Access
In a social media announcement on the same day, Venice revealed an enticing offering: individuals who acquire and stake VVV tokens will gain complimentary access to the platform’s API. This API provides private, uncensored generative text, images, and code using cutting-edge AI models, including the newly launched DeepSeek R-1.
DeepSeek, a Chinese AI firm, has sparked debate not only in the U.S. but also within cryptocurrency circles. Its R-1 model claims to compete effectively with established models like ChatGPT while boasting an open-source nature and lower resource demands. However, some have raised concerns regarding DeepSeek’s data collection practices tied to Chinese servers. In response, Voorhees has assured users that no personal data will be transmitted when utilizing R-1 through the Venice platform.
Token Distribution and Platform Growth
Moreover, Venice has made its API accessible to developers, third-party applications, and AI agents, expanding its reach and usability.
The allocation of the 100 million VVV tokens is structured carefully: 25 million are earmarked for 100,000 eligible Venice users, while another 25 million are reserved for select Base users, including holders of Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) tokens. Around 35% of the tokens are retained by Venice itself, with 10% dedicated to an incentive fund and 5% set aside to ensure liquidity. Additionally, the platform plans to distribute 14 million tokens annually.
It’s important to note that Venice conducted no presale for external investors, and the token’s design does not incorporate any governance mechanisms.
Since its inception in May, Venice has seen a rapid expansion, attracting over 400,000 registered users and processing approximately 15,000 inference requests each hour.
Before founding Venice, Erik Voorhees was a prominent figure in the Bitcoin community, establishing the cryptocurrency exchange ShapeShift back in July 2014.
Source: Cointelegraph
