Aerodrome Finance Suspends Contributors Amid Insider Trading Allegations

Aerodrome Finance, a decentralized exchange operating on Coinbase’s Base blockchain, has suspended two contributors following allegations of insider trading during the launch of Venice’s $VVV token.

The decision was made after an internal investigation was initiated just 30 minutes after suspicious trading activity was detected. Aerodrome Finance specializes in automated market making and liquidity incentives, and it flagged irregular trading patterns shortly after Venice, an Erik Voorhees-backed AI startup, debuted its token on January 27.

Investigation and Suspension

Aerodrome stated in a tweet,

The timing of a small percentage of the trading activity around the $VVV launch was flagged by internal monitoring…triggering an internal investigation.

The contributors were suspended within three hours of the token’s launch.

Aerodrome Finance emphasized its commitment to ethical standards, noting that the investigation remains ongoing and that further action may be taken.

Venice’s Token Launch

Venice launched the $VVV token as part of its broader strategy to integrate artificial intelligence with blockchain technology. By staking $VVV tokens, users gain access to Venice’s API for generative text, images, and code.

This model aims to replace traditional pay-per-request systems by granting stakers a share of the platform’s expanding computational capacity. Key benefits of staking $VVV tokens include:

  • Access to Venice’s API for generative content creation
  • Share of the platform’s computational capacity
  • Opportunity to participate in the development of AI-powered blockchain technology

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