Quick Breakdown
- 1inch Network has officially denied that its core team or controlled entities sold tokens during yesterday’s market volatility.
- The clarification follows a sharp 16.7% price drop triggered by reports of major investor wallets offloading $5.04 million in $1INCH.
- Management plans to overhaul the protocol’s tokenomics later this year to improve liquidity and market stability.
The 1inch Network has confirmed that no $1INCH (1inch) tokens were sold from wallets controlled by its entities, core team, or vault multi-signature accounts yesterday. The announcement, released on Wednesday, 28 January 2026, sought to distance the protocol from a massive sell-off that sent the native token’s price to an all-time low. Officials emphasised that the network does not oversee the trading decisions of third-party investors or private holders.
Statement
With respect to yesterday’s activity, no 1INCH was sold from wallets controlled by 1inch entities or our team, or our treasury multisigs. We do not control third-party holdings or their trading decisions.
Our mission and vision remain unchanged. It is that focus which…
— 1inch (@1inch) January 28, 2026
Massive investor exit triggers price crash
The project’s clarification was prompted by on-chain data from Lookonchain, which identified three prominent investor addresses offloading a combined 36.36 million tokens. This liquidation, valued at approximately $5.04 million, caused a 16.7% plunge in the token’s value within 24 hours. Some reports indicated the price dipped as low as $0.1134, representing a nearly 99% decline from its 2021 peak of $7.87.
Despite the team’s denial of direct involvement, the event has renewed scrutiny over the protocol’s historical “insider” selling patterns. Critics pointed to past instances in late 2024 and mid-2025 where team-linked wallets reportedly converted millions of $1INCH into stablecoins. This persistent downward pressure has often overshadowed fundamental milestones, such as 1inch’s recent AI-driven security partnerships.
Tokenomics review aimed at resilience
In response to the recurring volatility and thin liquidity, 1inch announced plans to conduct a comprehensive review of its token economic model later this year. The initiative aims to boost the protocol’s resilience during market downturns and ensure more sustainable value accrual for stakeholders.
Potential changes may include adjustments to “Unicorn Power” delegation and revenue-sharing models within the 1inch DAO. This strategic pivot is seen as a necessary step to maintain its position as a leading DEX aggregator against rising competitors like CoW Swap. By refining its economic structure, 1inch hopes to decouple its technical utility from the unpredictable movements of legacy investor wallets.
Menawhile, Base founder Jesse Pollak refused to artificially manipulate token values despite pressure from speculators. This highlights a central conflict between the community’s desire for a high-performing “flagship” asset and the leadership’s commitment to market integrity and legal compliance. By prioritizing open markets over short-term price intervention, the network aims for a sustainable ecosystem for creators, not zero-sum speculation. This illustrates the tension between decentralised ethics and volatile, meme-driven crypto culture.
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