Aerodrome Finance Suspends Two Contributors Following Insider Trading Allegations

The decision came after an internal investigation was initiated just 30 minutes after suspicious trading activity was detected.

Decentralized exchange Aerodrome Finance has suspended two contributors following allegations of insider trading during the launch of Venice's VVV token on January 27.

The move comes after suspicious trading activity was detected within 30 minutes of the launch, prompting an internal investigation.

Aerodrome Finance (AERO) is a decentralized exchange operating on Coinbase's Base blockchain. The platform specializes in automated market making and liquidity incentives.

Following the debut of VVV, the exchange's internal monitoring flagged irregular trading patterns, prompting an investigation.

“The timing of a small percentage of the trading activity around the $VVV launch was flagged by internal monitoring,” Aerodrome stated in a tweet. “This triggered an internal investigation.”

A note on the $VVV launch.

Projects often launch tokens on Aerodrome and launches are closely monitored.

The timing of a small percentage of the trading activity around the $VVV launch was flagged by internal monitoring in less than 30 minutes – triggering an internal investigation. Updates to follow.

The contributors were suspended within three hours of the token launch, according to the exchange, which is known for its commitment to ethical standards.

The investigation is still ongoing, and Aerodrome Finance has stated that further action may be taken.

Venice's token launch

As part of its strategy to integrate artificial intelligence with blockchain technology, Venice launched the VVV token.

Users can stake VVV tokens to gain access to Venice's API for generative text, images, and code through a unique model that replaces traditional pay-per-request systems. Instead, stakers receive a portion of the platform's growing computational capacity.