Is Velvet a scam?
MEDIUM RISK · 38/100Velvet (VELVET) has an automated risk score of 38/100 — medium risk. Velvet has a low free float: about 46% of total supply is circulating and an estimated 54% is not. This is an estimate from reported supply figures, not a reading of who holds the tokens; non-circulating supply typically includes treasury, vesting and reward allocations.
Automated assessment · updated 29 August 2026
Velvet
velvetMEDIUM$0.0597
-5.58% (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 · 6 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 97% from its all-time high — among the deepest drawdowns we measure.
- Supply Structure: Over half the supply (~54%) is held off-market — more supply is waiting off-market than is trading.
- Market Cap Risk: Market cap under $100M — mid-sized; large trades can still move the price.
- Price Volatility: 5.6% swing in 24h — moderate volatility.
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 share of total supply is circulating (estimated from reported supply figures, not from holder data). The price is set by that small share
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%
24-hour volume compared with market cap. Very high turnover can reflect genuine news-driven trading or inflated volume; very low turnover means the price is rarely tested. We measure the ratio and cannot attribute it to any party.
Market Cap Risk
Market Structure
3/15
20%
Market capitalisation. The smaller the asset, the less capital it takes to move its price.
Supply Structure
Tokenomics
7/20
35%
Free float (circulating vs total/max supply). A low float means much of the supply has yet to reach the market, so the price is set by a small share of it and future releases could dilute holders. Estimated from reported supply; holder data read from the chain is scored separately.
Price Volatility
Price Action
2/15
13%
24-hour price change. Large one-day moves happen for many reasons, including news and thin liquidity; this measures the size of the move, not its cause.
Not contributing (1): 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
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Community Comments
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What the contract allows
BNB Chain · measured 2026-10-18
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 or DeFi-protocol, staking or vault, 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 dated 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.
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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 38/100 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 97% from its all-time high — among the deepest drawdowns we measure; supply structure — Over half the supply (~54%) is held off-market — more supply is waiting off-market than is trading; market cap risk — Market cap under $100M — mid-sized; large trades can still move the price.
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 flag threshold.
Is Velvet safe to buy?
FraudCoins.com does not give buy or sell recommendations, and no cryptocurrency is safe. Velvet scores 38/100 (medium risk) on our automated risk model. Always do your own research and never invest more than you can afford to lose.