#VVVUSDT Venice launched the VVV token, the main purpose of which is to allow people to use the Venice API for free through staking to perform AI-related reasoning operations (generating text, images, program codes, etc.).
Main content of the article
1. The role of VVV tokens
• You can use VVV to exchange for the computing power of Venice API without having to pay every time you request the API.
• Your staking ratio determines how much of the Venice API you can use (for example, if you stake 1% of the total supply, you can use 1% of the AI computing power).
• Staking VVV can also generate additional income (Emission-based yield), which may make AI computing “free” or even “profitable”.
2. How this affects VVV tokens
• Demand comes from AI users: If developers or companies really need the Venice API, they may buy VVV to pledge, which will push up the price.
• Supply comes from Staking & Yield: If everyone can produce more VVV by staking VVV, this may increase the supply and lower the price.
• Market price impact: If Venice API is widely used, VVV may be valuable; if no one uses the API, VVV may just be a virtual currency.
Impact on your short orders
You short VVVUSDT perpetual contract.
So your logic should be:
• The reason why VVV is believed to be unable to rise or will fall may be:
• APIs may not necessarily have a huge demand.
• The token supply may continue to increase (because staking can also generate VVV).
• Market hype about AI concepts may cool down.
If you are shorting short term, the key points are:
1. See if there are a large number of developers in the market who are actually using Venice API (large-scale adoption has not been seen yet).
2. Observe whether there is any big investor dumping VVV, or newly released VVV pressure (there may be unlocking or staking income).
3. Binance’s Funding Rate. If too many people short sell and the rate becomes negative, you may need to be wary of a short-term rebound.
If you are shorting long term, you need to confirm:
• Venice API is not strong enough and not competitive (the market does not buy it).
• The returns generated by staking VVV are too high, making the token like an “inflation coin”.
• AI-related blockchain hype is receding.
Simply put, the success rate of your short orders depends on whether Venice API has actual users paying for it. This is the core of whether VVV can continue to appreciate in value.