Venice AI Token on Ethereum Layer 2 Base Surges to $1.6 Billion Valuation
Venice AI made headlines with the launch of its native token VVV, on Ethereum's layer-2 network, Base. This privacy-focused artificial intelligence platform, spearheaded by Erik Voorhees, a notable figure in the Bitcoin and crypto community, achieved a staggering fully diluted valuation (FDV) of $1 billion within just two hours of its debut. The Venice Token (VVV) reached this milestone shortly after 6 pm UTC on January 27, showcasing the rapid investor interest and market demand for innovative AI solutions.
The token's FDV has since fluctuated, with a market value standing at around $306 million. This valuation comes from the release of 25 million VVV tokens out of a total supply of 100 million, available to the public. According to Basescan, the token has attracted over 40,000 holders, indicating significant community engagement and interest in the project so far.
Venice AI has positioned itself as a beacon for those seeking private and uncensored AI interactions. By purchasing and staking VVV tokens, users gain free access to Venice's API, facilitating the generation of text, images, and code through AI models like DeepSeek R-1. This model, introduced by the Chinese AI firm DeepSeek, has stirred the tech world by offering capabilities comparable to leading AI like ChatGPT, yet with the benefits of being open-source and requiring less computational power.
However, concerns have been raised regarding DeepSeek's data practices, with allegations of data being transmitted back to China. Erik Voorhees has reassured users that when accessing DeepSeek R-1 through Venice, user data privacy is maintained, ensuring that "none of it is going anywhere." This commitment to privacy underscores Venice's ethos, setting it apart in a landscape often criticized for data surveillance.
Apart from individual users, Venice has extended its API access to AI agents, developers, and third-party applications, broadening its utility and fostering a collaborative ecosystem. The token distribution plan is strategic, with 25 million tokens allocated to Venice's user base and another 25 million to specific Base network participants, including holders of Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) tokens. The remaining tokens are distributed as follows: 35% to Venice itself, 10% to an incentive fund, and 5% for liquidity, with an annual release of 14 million tokens to maintain economic balance.
Notably, Venice AI did not engage in a presale to outside investors and has no governance mechanism, emphasizing a focus on utility and accessibility over speculative governance. Since its inception in May, Venice has garnered over 400,000 registered users, processing around 15,000 inference requests per hour, which highlights its growing acceptance and utility in the AI sector.
Erik Voorhees, before founding Venice AI, was known for his work in the cryptocurrency space, having been a pioneer in Bitcoin and later establishing the crypto exchange ShapeShift and also has been involved with Thorchain. His latest venture with Venice AI not only continues his legacy in the blockchain domain but also extends it into the promising realm of decentralized AI technology.