Venice AI has gained significant traction in the crypto market, particularly for allowing third-party developers to execute AI-driven tasks. This rise in popularity led to the launch of its native token, VVV, which secured a high-profile listing on Coinbase and is expected to debut on Binance soon.
"Venice AI’s VVV token has been making waves in the crypto market, but is it heading for a massive rebound or facing a major scandal? With insider trading allegations and a high-profile whale investor doubling down, the next move for VVV could be game-changing."
Crypto analyst Amir Ormu has accused the Venice AI team of secretly minting 1,000,000 VVV tokens—worth approximately $5.79 million—immediately following the Coinbase listing. This revelation has triggered skepticism among investors, who fear that such actions could indicate insider manipulation. If these claims hold true, the move could undermine the credibility of the Venice AI platform and erode investor confidence.
Adding to the controversy, Amir Ormu shared detailed blockchain data suggesting that the Venice team sold roughly $450,000 worth of the newly minted VVV tokens. The transactions reportedly originated from a newly created wallet (0xb6e08047...6f4aa66), which appears to be controlled by the same signers as the platform’s multi-signature wallets.
Such large, sudden sales can significantly impact market stability, potentially causing VVV’s price to plummet if additional tokens are liquidated into the market. This raises concerns about potential sell-offs, which could lead to heightened volatility and uncertainty for token holders.
Amid the controversy, a high-stakes crypto investor, who had previously suffered a substantial $2.76 million loss trading VVV, has decided to double down on the token. Just 13 hours ago, this trader invested 674 ETH (approximately $1.88 million) to acquire 299,210 VVV tokens.
This move comes after their earlier investment of 1,186 ETH ($3.8 million) in VVV, which was eventually sold for just $1.03 million, resulting in a massive loss. The trader’s latest bet suggests confidence in a potential price recovery, but the lingering concerns over Venice’s transparency cast a shadow over the token’s future.
Despite the ongoing controversy, Venice’s token has experienced notable price movements. VVV price is currently priced at $5.57, reflecting a 29.15% increase in the last 24 hours. The trading volume has also seen a moderate rise of 7.17%, reaching $135.10 million, while the token’s market cap has surpassed $140 million.
Analysts suggest that VVV is trading within a tight range, fluctuating between $4.50 and $6.60. A successful breakout above the $6.60 resistance level—last tested on February 1st—could drive the price toward the next target of $7.31, aligning with the 23.6% Fibonacci retracement level.
If bullish momentum sustains, VVV could see further gains, potentially reaching $10.41 and even $12. Some optimistic projections even suggest a rally toward $18.97. However, failure to breach key resistance could result in a pullback toward $4.00, aligning with the lower trendline.
From a technical perspective, the Relative Strength Index (RSI) currently stands at 58.83, indicating bullish momentum. However, traders should remain cautious if the RSI nears overbought levels, which could signal an impending correction. Given the uncertainties surrounding the Venice team’s alleged token sales and market behavior, investors are advised to closely monitor developments before making significant trading decisions.
The coming weeks will be crucial for Venice AI and its VVV token. If the platform can address transparency concerns and rebuild investor trust, it could continue its upward trajectory. However, if further evidence of insider activity emerges, the market could respond negatively, leading to a potential price drop. The whale investor’s bold bet suggests some confidence in a rebound, but the broader market sentiment remains mixed. Investors should weigh both the risks and potential rewards carefully before making their next move.
Also read: Rollblock Price Prediction: The Next 100x Crypto Opportunity