Is Velvet a scam?
MEDIUM RISK · 36/100Velvet (VELVET) has an automated risk score of 36/100 — medium risk. Velvet has a dangerously concentrated supply: only ~46% is in free float, meaning an estimated ~54% is controlled by a small number of wallets. This is the setup behind single-hand price manipulation — pinning the price to drain leveraged traders before an abrupt dump.
Automated assessment · updated 29 August 2026
Velvet
velvetMEDIUM$0.0509
-1.28% (24h)
updating live price…
Risk Assessment
Risk Score
MEDIUM RISK
Driven primarily by drawdown from all-time high (25 of 25 points). Every contributing factor is itemised below.
measured 2026-08-29 · 7 factors evaluated
Here is what the public data shows about Velvet, ordered by how strongly each factor contributes to the score:
- Drawdown From All-Time High: Down 98% from its all-time high — among the deepest drawdowns we measure.
- Supply Structure: Over half the supply (~54%) is held off-market — a single coordinated seller can dictate the price.
- Market Cap Risk: Market cap under $100M — moderate manipulation risk.
- Volume Anomaly: Volume at 14.2% of market cap — within normal range.
These are automated, opinion-based indicators from public data — not financial advice or an allegation of wrongdoing. See our methodology.
Why this asset is flagged as high-risk
The patterns below are automated, opinion-based observations from public market data. They describe statistical risk indicators — not proof of wrongdoing by any project or person.
A small number of insider/team wallets control most of the supply (very low free float). This allows single-hand price control — pinning the price high to drain leveraged short positions via funding, then dumping the entire position for a sudden 90%+ collapse
Risk Factor Breakdown
Each factor is scored independently and weighted to calculate the total risk score.
Drawdown From All-Time High
Price Action
25/25
100%
How far the price sits below its peak. Deep drawdowns are common to abandoned and post-collapse tokens, but also to assets in a prolonged bear market — on its own this measures price history, not conduct.
Volume Anomaly
Trading Signals
1/20
5%
Abnormal volume-to-market-cap ratio is the primary indicator of wash trading or liquidity traps
Market Cap Risk
Market Structure
3/15
20%
Small market caps can be trivially manipulated by a single large holder (whale)
Supply Structure
Tokenomics
7/20
35%
Free float (circulating vs total/max supply). A low float means both future dilution from locked reserves and concentration enabling single-hand price control (estimated; verified holder data is scored separately).
Not contributing (3): Price Volatility, On-Chain Holder Concentration, Transparency Gaps — 0 points.
Key Metrics
Protect Yourself
- • Never invest more than you can afford to lose entirely
- • Check token concentration — if top 10 wallets hold >50%, be cautious
- • Verify the team is public and doxxed
- • Read the smart contract audit before buying
- • Be wary of unrealistic APY promises
Embed Risk Badge
Writing about this coin? Embed our live risk badge — it updates automatically with each daily scan.
Community Comments
Loading comments…
What the contract allows
BNB Chain · measured 2026-09-13
Velvet’s deployed contract grants its owner 2 privileges that can affect your position. These are properties of the code itself, not allegations about anyone’s conduct — many legitimate projects retain them deliberately.
Owner can pause all transfers
Trading and transfers can be halted, locking holders in place.
Owner can mint new tokens
Supply is not fixed; new tokens can be created, diluting existing holders.
Trades are rate-limited by cooldown
The contract enforces a delay between trades from the same address.
Checked and not present: change any wallet balance, blacklist wallets, ownership can be reclaimed after renouncing, contract has a hidden owner, contract can self-destruct.
Source code: published and verified, so the deployed bytecode can be independently reviewed.
Contract analysis from GoPlus Labs · verify on-chain. An upgradeable contract can change after this reading.
How we counted holders here
Ten largest wallets
87.7%
including custodial
Largest private wallets
86.9%
after excluding 1
1 of Velvet’s ten largest holders is a labelled exchange, market-maker, treasury or vesting, liquidity-pool, staking, bridge, multisig or burn address — supply that is custodied, pooled or destroyed rather than sitting in one person’s wallet. Separating it out moves the top-10 figure by 0.8 points. We report the private-wallet figure because that is the supply someone can actually choose to sell today.
Wallets excluded from the top 10
| Address | Classified as | Label | Share |
|---|---|---|---|
| 0x0d07…92fe | Exchange wallet | Gate.io: Hot Wallet | 1.94% |
Classification applied to the 100 holder records returned for this contract; 92 remained after exclusions · measured 2026-08-29. Custodial wallets are identified by public address labels, so an unlabelled one may still be counted as private — this correction is a floor, not a guarantee.
Velvet holder-concentration history
16 daily measurements · -4.4 pts over the period
FraudCoins.com has measured the share of Velvet’s supply held by its top 10 non-exchange wallets on 16 days since 18 Jul 2026. The highest reading was 91.9% on 29 Jul 2026; the most recent reading is 86.9% on 29 Aug 2026.
Composite risk score (0–100)
Recorded measurements (16)
| Date measured | Top 10 hold | Flagged |
|---|---|---|
| 86.9% | No | |
| 86.9% | No | |
| 89% | No | |
| 90.7% | No | |
| 91.8% | No | |
| 91.9% | No | |
| 91.8% | No | |
| 91.9% | No | |
| 91.7% | No | |
| 91.6% | No | |
| 91.7% | No | |
| 91.9% | No |
Each row is an automated measurement taken on the date shown, using public on-chain holder data with burn and labelled exchange, staking, bridge and liquidity wallets excluded. Historical readings describe what our model measured on that date — they are not statements about the project’s conduct then or now, and are not financial advice.
Track Velvet and 1,200+ other assets
One email when any coin newly crosses our 50% top-10 holder-concentration threshold. No account needed.
Confirmed opt-in, unsubscribe in one click. We don’t sell your data — see our privacy policy.
Frequently asked questions about Velvet
Is Velvet a scam?
We do not allege that Velvet (VELVET) is a scam, and we have no evidence of wrongdoing by anyone associated with it. What we can tell you is what we measured: Its ten largest private wallets hold 86.9% of supply (exchange, staking, bridge and burn addresses excluded). That places it at 36/100 on our automated scale, which we label medium risk. A high score means the asset has structural characteristics that have historically preceded losses — not that fraud has occurred. These are automated, opinion-based indicators from public market and on-chain data — not statements of fact, financial advice, or allegations of wrongdoing.
Why is Velvet flagged as medium risk?
Velvet's risk score is driven mainly by: drawdown from all-time high — Down 98% from its all-time high — among the deepest drawdowns we measure; supply structure — Over half the supply (~54%) is held off-market — a single coordinated seller can dictate the price; market cap risk — Market cap under $100M — moderate manipulation risk.
Who controls Velvet's supply?
On-chain data shows the top 10 holders of Velvet hold 86.9% of the supply (burn and labelled exchange, staking and liquidity wallets excluded). This is shown for transparency and sits below our 50% manipulation-flag threshold.
Is Velvet safe to buy?
FraudCoins.com does not give buy or sell recommendations, and no cryptocurrency is safe. Velvet scores 36/100 (medium risk) on our automated risk model. Always do your own research and never invest more than you can afford to lose.