1inch, a leading aggregator of decentralized protocols, has secured $175 million in a Series B funding round through a private token sale. Unlike traditional venture rounds, this investment involved the sale of 1INCH tokens to institutional investors, reinforcing 1inch's position in the decentralized finance (DeFi) ecosystem.
What Is 1inch?
1inch optimizes decentralized transactions by aggregating liquidity across multiple protocols. Key features include:
- Best Exchange Rates: Compares rates across dozens of decentralized exchanges.
- Efficiency: Reduces slippage and gas fees for traders.
- Multi-Chain Support: Operates on Ethereum, Binance Smart Chain, and other blockchains.
๐ Discover how 1inch enhances DeFi trading
The Series B Token Sale
- Funding Structure: 8% of the total 1INCH token supply was allocated from the Growth & Development Fund.
- Investors: Led by Amber Group, with participation from Jane Street, VanEck, Fenbushi Capital, and others.
- Token Utility: Funds will drive ecosystem growth, regulatory compliance, and institutional adoption.
Regulatory Challenges and 1inch Pro
1inch recently blocked U.S. IP addresses to comply with evolving regulations. The company plans to launch 1inch Pro, a permissioned service featuring:
- KYC/AML Compliance: Adhering to "know your customer" and "anti-money laundering" rules.
- Segregated Liquidity: Separate from the main 1inch Network.
- Institutional Focus: Targeting regulated investors.
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Market Impact and User Growth
- Trading Volume: Over $100 billion in transactions since launch.
- Active Users: 195,000 in the past 30 days (Dune Analytics).
- Competitors: Matcha and ParaSwap offer similar aggregation services.
FAQ
Q: How does 1inch make money?
A: 1inch earns fees from routing trades through its aggregation protocol.
Q: Is 1inch available in the U.S.?
A: Currently blocked, but 1inch Pro will serve U.S. users post-regulatory approval.
Q: Whatโs the advantage of using 1inch over Uniswap?
A: 1inch scans multiple DEXs to find the best rates, while Uniswap is a single exchange.
Future Outlook
1inch aims to bridge DeFi and traditional finance through institutional-grade products. Regulatory clarity remains the largest hurdle, but the $175 million raise positions it for long-term growth.
Keywords: 1inch, DeFi, decentralized exchange, 1INCH token, crypto aggregation, Series B funding
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