1inch denies involvement in 14 million token sale that sent 1INCH to record lows

The 1inch team has issued an official statement on X denying any involvement in the sale of 14 million $1INCH, its native cryptocurrency, an action that led to the token crashing to its all-time low on Tuesday, January 27.

Its statement on X read, “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.”

The 14 million token disposal worth $1.83 million triggered a market panic and caused the token to hit a downward trend. However, it began to show signs of recovery during the late hours of January 27, trading around $0.12 after hitting a record low of $0.1127.

However, that rally was short-lived, as it resumed its downward trend until the 1inch team released its public statement denying any involvement with the token sale. The token has gone up a bit and now trades at around $0.116, as of the time of writing.

The clarification comes after on-chain analyst Ember tracked the transaction to an address that had received 15 million $1INCH through vesting unlocks approximately one year ago.

1inch team pledges to review tokenomics

In the same statement, 1inch informed its community that it plans to review aspects of its tokenomics structure in 2026, stating, “1inch Network this year plans to review aspects of its tokenomics to further strengthen resilience during market downturns and times of low liquidity.”

The team provided no specific details about proposed changes, but the announcement signals that it is an acknowledgment that some parts of its current token distribution model need updating, with one X user recommending that they review their token holder benefits, adding that Hyperliquid is doing similar and does it right.

The 1inch team stated that their mission and vision remain unchanged, writing, “It is that focus which has pushed our total swap volume to almost $800B since 2019 and allows us to sustain hundreds of millions in daily volume even during bear markets. 1inch is as strong today as ever.”

The team highlighted its global workforce of 170 employees powering swap infrastructure across leading wallets and applications, positioning the protocol as a core component of the decentralized finance ecosystem.

What is the current state of $1INCH?

Trading activity as seen on CoinMarketCap suggests a degree of stabilization, with 24-hour volume currently at around $61.2 million, a 3.8% rise.

The increased activity reflects both heightened volatility and renewed interest following the team’s public response, though the token remained down more than 98% from its $7.87 all-time high recorded in 2021.

The market capitalization is currently around $165 million.

Community reaction to the statement was mixed, with most investors welcoming the planned tokenomics review and the team’s clarification, while others pressed for more immediate answers about who controlled the selling address and why they chose to liquidate such a substantial position at multi-year lows.