‘Team Sells Coins’ Claim: This Altcoin Is Dumped On Exchanges!

1inch (1INCH), a leading decentralized exchange, recently saw a price drop after news broke that 1inch Foundation is selling altcoins. However, statements came from the team that this was not true. Here are the details…

Selling panic for 1inch: Altcoin price drops

1INCH, the 86th-ranked coin by market cap, lost nearly 3 percent. The reason behind this was rumors that 1inch Foundation was selling some of its assets. Recent findings from smart money and on-chain tracking page Lookonchain showed that 1inch Foundation transferred 15.56 million 1INCH tokens. The transferred tokens amounted to approximately $8 million. 1inch Foundation made the transfer 18 hours before Lookonchain’s tweet went live. Then, the amount was transferred to Binance 14 hours after the first transfer took place.

Furthermore, data from WhaleAlert also showed 15,599,996 INCH transfers worth $8,033,795 from an unknown wallet to Binance. Specifically, the date was June 9, 2022 when 1inch Foundation last transferred 15.56 million 1INCH. At that time, the 1INCH token price had dropped from $0.81 to $0.60 within a week. The June transfer dropped the price of 1INCH by over 35 percent in ten days.

Now, after the sale of 15.56 million 1INCH tokens, the effects of this liquidation are yet to be seen. However, 1INCH price was already close to the lowest price support at $0.50. According to some analysts, a drop below this could trigger big losses for both long-term and short-term holders.

On-chain data also pointed to sales

To verify the last 1INCH sale, the ten chain metrics provide some good insights into the claims. Firstly, on December 1, when the sale took place, there was a large increase in 1INCH stock listings supporting the sales claims. Exchange net flows were as high as 14.1 million 1INCH, meaning a significant amount of tokens went to exchanges. In addition, the “age metric” of the coins showed that many legacy tokens are in motion in the market, which could lead to significant price changes. As we reported on cryptokoin.com, a week ago, 1inch Foundation launched its RabbitHole tool, which aims to protect users against “sandwich attacks”.

1inch officials explained the incident

Sergey Maslennikov, chief communications officer at 1inch Network, made a statement. “Actually, these wallets and token transfers are in no way affiliated with the 1inch Foundation,” he said. However, he said that this sale was due to some backers who consistently bought 1inch Network’s unlocked 1INCH tokens according to the “vesting” plan/timeline. Additionally, a Tweet from DonYakka claimed that the transfer was “not from the 1INCH foundation wallet.” The following expressions were used in the tweet:

A transaction made through a former investor. Because they demanded it through the vesting contract, they did it on the date the 25 percent drop occurred in the entire market. 1INCH has a BTC and ETH pair, so be prepared to pump when these pairs rise.