The 1INCH token tanked after on-chain data showed millions of dollars in sales from early investor wallets.
The team behind multi-chain decentralized exchange aggregator 1inch distanced itself from recent early investor sales that pushed the 1INCH token to an all-time low this week.
The token fell about 20% over the past few days, hitting an all-time low of $0.112 on Wednesday, Jan. 28.
The team said in an X statement on Jan. 28 that it was not involved in the token sales, stating “no 1INCH was sold from wallets controlled by 1inch entities or our team, or our treasury multisigs.”
The firm added that it plans to review its tokenomics this year, without providing further details.
“We also wanted to let the community know, 1inch Network this year plans to review aspects of its tokenomics to further strengthen resilience during market downturns and times of low liquidity,” the statement on X reads.
A spokesperson for 1inch declined to comment further, telling The Defiant that the company has already addressed the matter in its published statement.
Vesting Wallets Flagged
On Tuesday, Jan. 27, some in the crypto community flagged that what appeared to be several vesting wallets had sold millions of dollars worth of 1INCH, largely via decentralized aggregator CoW Swap, reportedly with more than $6.5 million in realized losses.
Around the same time as the on-chain transactions, the price of 1INCH dropped sharply, evidently triggered by the unusual sell pressure, and tumbled further to reach its new all-time low the following day.