VELO's NASDAQ Gambit: Liquidity Gains vs. Algorithmic Risks

VELO Faces Pivotal Turning Point After Bearish Pattern Breakout

The stock of Velo3D, Inc. (VELO) has entered a critical juncture following its recent transition to the NASDAQ on August 19, 2025, marking a strategic shift for the company amid broader market volatility, according to an OTC Markets report. This move, part of a quarterly rebalancing of OTCQX indexes, reflects efforts by the firm to align with higher-liquidity markets and signal institutional credibility. OTC Markets Group reported that VELO's migration to NASDAQ coincided with a 2.9% rise in the OTCQX Composite Index during Q3 2025, as the firm left the over-the-counter market for a more prominent exchange.

The transition underscores a broader trend of companies seeking to capitalize on improved market visibility and investor confidence. For VELO, the move comes after a period of mixed performance in the OTC space, where it had previously traded amid a landscape of speculative activity and fragmented liquidity. Analysts note that exiting the OTCQX market—where it faced competition from firms like Digital Brands Group and BTQ Technologies—positions VELO to attract a wider range of institutional investors, the OTC Markets report found.

Meanwhile, the broader financial ecosystem is witnessing transformative shifts. Commerce Inc.'s launch of Commerce360, a retail payment platform integrating GoDaddy and Worldpay, highlights a parallel push toward real-time liquidity and reduced transaction costs, according to a Commerce360 announcement. By offering $5 million in free point-of-sale terminals to 10,000 businesses, Commerce aims to disrupt traditional payment gateways, a move that could indirectly benefit firms like VELO by fostering a more efficient capital flow environment.

However, the path forward is not without challenges. In a separate development, a Hagens Berman lawsuit against racetrack operators for alleged AI-driven betting manipulation reveals systemic risks in algorithmic markets. The firm argues that "cash-strapped racetracks are selling out everyday bettors to whales who use algorithms to wager huge sums at friendlier odds," a pattern that mirrors concerns about high-frequency trading and market fairness. While VELO operates in additive manufacturing, the lawsuit underscores regulatory and ethical scrutiny of algorithmic influence across sectors, potentially spilling over into tech and fintech spaces.

From a technical perspective, VELO's NASDAQ debut follows a bearish price pattern that broke out in late 2024, driven by macroeconomic headwinds and sector-specific pressures. The company's Q3 2025 performance, though not yet disclosed, will be critical in validating its new market positioning. For now, the migration aligns with a broader OTCQX trend: 47 new companies joined the Composite Index in Q3, while 51 were removed, reflecting a dynamic but competitive landscape, the OTC Markets report noted.

As VELO navigates this transition, stakeholders will closely watch its ability to leverage NASDAQ's infrastructure to scale operations and secure long-term investor trust. With Commerce360's retail initiatives and a Raydium report showing $2.5B in total value locked (TVL) signaling robust liquidity in other corners of the market, the stage is set for a reevaluation of VELO's strategic trajectory.