• 14 July, 2024
News

1inch Token Tanks as Reports of $100 Million Token Unlock Surface

TokenUnlocks data shows that a big unlock is likely to occur for the decentralized exchange aggregator, which would result in the release of tokens with a current market value of $112 million. Per the on-chain analysis platform, on December 30th, about 227.2 million 1inch tokens would be unlocked, accounting for over 15% of the entire supply of 1.5 billion tokens.

Heavy Selling Pressure

Furthermore, rumors have surfaced that the 1inch Foundation was selling tokens on their cryptocurrency exchange aggregator. According to data compiled by Lookonchain, a website that keeps tabs on digital currency and blockchain transactions, the 1inch Foundation has dispersed 15.56 million 1inch tokens. The value of the tokens amounted to approximately $8 million.

The foundation transferred the funds 18 hours before Lookonchain’s Tweet. 14 hours later, the assets were moved to Binance. The last 1inch token unlock was back in June 2022. At that moment, the coin’s spot price dropped by 25%, from $0.81 to $0.60. 

In the days before the June unlock, a “whale wallet” placed 15 million tokens into the cryptocurrency exchange Binance. According to Etherscan, on December 2, this same wallet seems to have transferred another 15,000,000 1inch tokens to Binance.

In addition, on-chain analytics appear to lend credence to speculation that the project team is selling tokens. According to Santiment data, 1inch exchange inflows significantly increased on December 1 when the selling transpired, supporting the claims. Per the data, the total number of 1inch tokens moving via exchanges at 14.1 million, indicating a substantial influx of tokens.

The reports surfaced just days after the 1inch Foundation published the RabbitHole tool to defend users from sandwich attacks. However, these developments don’t seem to have much of an effect on the price. 1inch has taken a hit following the recent developments, down 6.1% over the past week, trading at approximately $0.492 at the time of writing.

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