Venice's VVV Price Analysis After Burning One-Third of the Total Supply

Crypto AI startup Venice has burned nearly one-third of its total token supply, eliminating 32.5 million unclaimed VVV tokens following the conclusion of its airdrop. 

The move, worth approximately $100 million, comes amid lingering controversy over token sales by some team members. Despite these concerns, the burn aims to reinforce Venice’s commitment to decentralization and potentially stabilize its token price.

Read More: How to Buy Venice Token (VVV)

Key Takeaways

• Venice burned 32.5 million unclaimed VVV tokens, equating to roughly one-third of the total supply.
• VVV price surged 9.30% to $3.53 following the token burn, according to Coinbase data.
• The move follows accusations of team members profiting off early sales, which Venice addressed by buying back and burning previously sold tokens.

The Impact of Venice’s Token Burn

Venice’s 45-day airdrop, which began in late January, ended on Wednesday, with 17.4 million VVV tokens distributed to over 40,000 participants. However, nearly 33 million unclaimed tokens were burned, as confirmed by on-chain data from Base Scan.

Burning tokens is a common practice in crypto, designed to reduce supply and, theoretically, increase price stability. 

In Venice’s case, the decision also appears to be a reputation management strategy following allegations that some team members engaged in a pump-and-dump scheme by selling their holdings at peak prices.

Price Reaction: VVV Surges 9.30%

At the time of reporting, VVV was trading at $3.53, up 9.30%, reflecting a positive market reaction to the supply reduction. Historically, token burns create scarcity, which can lead to a price increase if demand remains unchanged.

Read More: Venice Token (VVV) Price Analysis

Addressing Controversy: Venice’s Response

Venice addressed community concerns, clarifying that only 1% of the total supply was sold on launch day. The firm stated that this sale was approved internally, but social media backlash spun the event into a negative narrative.

To counter this perception, Venice repurchased and burned all tokens previously sold by team members, in addition to the unclaimed VVV.

“To resolve any lingering doubts about our commitment to the importance of unrestricted intelligence, Venice bought back the 1% of VVV that was sold, and these, too, were burned at dawn,” the company stated.

Conclusion

Venice’s massive token burn marks a pivotal moment for the project, as it works to restore community trust and reinforce its vision of a decentralized, censorship-resistant AI ecosystem. 

While VVV’s price saw a notable boost, the long-term impact of the burn remains uncertain, particularly as the firm continues to navigate regulatory scrutiny and public perception challenges.

FAQs

What is the significance of Venice burning its tokens? 

By burning 32.5 million VVV, Venice reduced its total supply, which could help increase scarcity and potentially drive up the token’s value. It also served as a way to address concerns over past token sales by some team members.

How has the market reacted to the burn?

VVV’s price increased by 9.30% to $3.53, reflecting a positive short-term market response.

What was the controversy surrounding Venice’s token sales?

Some Venice team members reportedly sold tokens at peak prices, leading to pump-and-dump accusations. Venice later repurchased and burned those tokens to rebuild trust with the community.