Venice AI Token Soars to $1.6 Billion in Value, Revolutionizing Access to DeepSeek AI

Venice AI, a privacy-focused artificial intelligence platform, has achieved a remarkable milestone by surpassing a total valuation of $1.6 billion within hours of launching its native token. This rapid growth is tied to the platform’s unique offering: private access to DeepSeek’s AI model, a breakthrough technology that has stirred both excitement and controversy in the AI and crypto spaces.

Venice AI's Rapid Surge

Launched by Bitcoin advocate Erik Voorhees, Venice AI made its debut on Ethereum's layer-2 network, Base, with the introduction of its token, Venice Token (VVV). Within just 90 minutes of its release on January 27, 2025, the token reached a fully diluted valuation (FDV) of over $1 billion, with figures quickly climbing to approximately $1.65 billion.

As of the latest data, Venice Token's market capitalization sits at $306.4 million, with 25 million of the total 100 million tokens already released to the public. The token now boasts over 13,200 holders, according to blockchain analytics from Basescan.

Access to DeepSeek R-1: The Key Offering

One of the main draws for Venice AI users is its access to the DeepSeek R-1 AI model, which promises to deliver highly efficient, generative AI capabilities for text, images, and code. The R-1 model has generated buzz for its ability to rival established AI leaders like ChatGPT, all while being open-source and requiring less computational power.

DeepSeek has raised concerns due to its data collection practices, particularly regarding user information sent to China. However, Erik Voorhees was quick to assure users that when accessing R-1 through Venice AI, "none of the data is going anywhere." This claim positions Venice AI as a privacy-conscious alternative in an increasingly data-sensitive world.

Venice Token Mechanics

In addition to its access to the DeepSeek R-1 model, Venice Token holders can stake their VVV tokens to gain free, ongoing access to Venice AI’s API, which supports private and uncensored generative AI tasks. The platform’s openness also extends to third-party developers and applications, enabling broader integration of Venice’s services.

The tokenomics of Venice Token (VVV) are designed with community engagement in mind. Out of the 100 million total token supply, 25 million tokens were distributed to 100,000 eligible Venice users. Another 25 million were allocated to Base users, including those holding Aerodrome Finance (AERO) and Virtuals Protocol (VIRTUAL) tokens. Additionally, 35% of the total supply was reserved for Venice itself, with 10% set aside for an incentive fund and 5% for liquidity. To ensure continuous token distribution, Venice plans to emit 14 million tokens annually.

Importantly, Venice did not conduct a presale for outside investors, and there is currently no governance mechanism in place, signaling a commitment to decentralization and community-driven growth.

Venice’s Early Success and Growing User Base

Since its launch in May 2024, Venice AI has rapidly gained traction, amassing over 400,000 registered users and generating an impressive 15,000 inference requests per hour. This surge in activity underscores the growing demand for privacy-conscious AI tools and the increasing interest in decentralized AI models.

Erik Voorhees: A Visionary in the Crypto Space

Erik Voorhees is no stranger to the crypto world. Before founding Venice AI, he was an early Bitcoin pioneer and the founder of ShapeShift, a cryptocurrency exchange launched in 2014. His experience in crypto space has given him a unique perspective on the intersection of blockchain technology, AI, and privacy—a, a combination that has been central to the development of Venice AI.

Looking Ahead

With its rapid rise in value and growing user base, Venice AI is positioning itself at the forefront of the AI and crypto revolution. By offering secure, private access to one of the most advanced AI models available, Venice is paving the way for a new era of generative AI that emphasizes privacy, decentralization, and user control. As more users stake their Venice Tokens and engage with the platform, the future looks incredibly promising for this innovative AI startup.

As the Venice AI ecosystem continues to evolve, it will be interesting to see how it competes with other AI and blockchain projects, and whether it can maintain its momentum in the fast-moving world of artificial intelligence and cryptocurrency.