Updated Dec. 2, 17:00UTC:
The chief communication at 1inch Network, Sergey Maslennikov clarified:
“Actually, those wallets and token transfers are not connected to the 1inch Foundation in any way, but attribute to some of the 1inch Network’s backers who continuously receive their unlocked 1INCH tokens in accordance with the vesting schedule/timeline”
Additionally, a Tweet from DonYakka claimed that the transfer “was not from the 1INCH foundation wallet.”
He said: “It is via an early investor because they have claimed through vesting contract, the date that 25% drop happened the whole market did, 1INCH does have a BTC and ETH pair so when these pairs increase be ready for pump too.”
1inch, a leading cryptocurrency exchange aggregator, recently saw a price pullback as news of the 1inch Foundation selling tokens surfaced.
The 86th-ranked coin by market capitalization, 1INCH, saw its price fall by over 3% amid rumors of the 1inch Foundation offloading some of its holdings.
1inch Foundation Dumps Tokens
Recent findings from smart money and on-chain tracker page Lookonchain showed that the 1inch Foundation transferred out 15.56 million 1INCH tokens. The transferred tokens amounted to around $8 million.
The 1inch Foundation made the transfer 18 hours before the publishing of Lookonchain’s Tweet. After that the amount was transferred to Binance 14 hours after the first transfer happened.
Furthermore, data from WhaleAlert also showed a transfer of 15,599,996 INCH worth $8,033,795 from an unknown wallet to Binance.
Notably, the last time the 1inch Foundation transferred out 15.56 million 1INCH was on June 9, this year. At that time, the price of 1INCH token had dropped from $0.81 to $0.60 in a week. The June transfer brought the 1INCH price down by over 35% in the next ten days.
For now, after the selling of 15.56 million 1INCH tokens, the effects of this liquidation are yet to be seen. However, the 1INCH price was already close to the lowest price support at the $0.50 mark, a fall below the same could trigger major losses for both long-term and short-term holders.
On-Chain Data Supports 1INCH Selling Claims
To confirm the recent 1INCH selling, on-chain metrics provide some good insights into the claims. Firstly, on Dec. 1, when the selling took place, there was a major spike in 1INCH exchange inflows which corroborates with the selling claims.
Exchange net flows rose to as high as 14.1 million 1INCH tokens, which meant that a considerable amount of tokens went to exchanges.
In addition to that, the Age Consumed metric presented a major spike of 10.94 billion 1INCH. A spike in the Age Consumed metric presented that a lot of old tokens were on the move, which could lead to significant price changes in the market.
Just a week back, the 1inch Foundation released the RabbitHole tool aimed at protecting users against sandwich attacks. Despite the ecosystem-centric updates, the 1INCH price could continue to suffer due to the recent sell-offs.
With the 1INCH price at the lowest levels, it remains to be seen where a price bottom can be formed.
For now, BeInCrypto has reached out to 1inch Foundation for further information on the selling.
Disclaimer: BeInCrypto has reached out to 1Inch for an official statement about the recent developments, but it has yet to hear back.
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