The 1inch price took a sharp hit after on-chain analysts recorded significant inflows to centralized exchanges. Market participants linked the transaction to addresses allegedly belonging to the project team or early investors. 1inch representatives promptly issued a statement denying any involvement in price manipulation.
Timeline of the Drop
According to trackers, the selling pressure was triggered by the disposal of 14 million 1inch (estimated at approx. $1.83 M). The transfer of assets to the Binance exchange began on January 27. Within minutes, the token led in sales volume and transfers to CEXs, causing an instant price drop of over 15%. Aggressive selling led traders to suspect that insiders were offloading assets.
Team Response
The project addressed the panic with an official statement. Developers stated that not a single 1inch token moved from wallets controlled by 1inch entities, team members, or treasury multisigs. The statement emphasized the lack of control over third-party assets and their trading decisions.
Following the incident, the team announced plans to overhaul the token economics. Changes will be implemented this year to improve protocol resilience during periods of market turbulence and low liquidity. Developers described the project’s current fundamentals as strong, citing a total swap volume of $800 B since launch.
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