The 1inch team investment fund has recently liquidated a large number of key assets, in a not-so-surprising move, to respond to the sustained bearish market.
Just in the past hour, the fund has sold off 37.9 WBTC (worth around $3.28 million) and 511 ETH (around $1.05 million). This has obviously led to a lot of speculation about what they’re up to, given that their recent investments in these assets are currently underwater.
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The 1inch Team’s Recent Purchases and Market Struggles
Between February 2 and March 10, the 1inch team’s investment fund was very active in investing in major cryptocurrencies. The fund made a significant number of purchases in several large-cap tokens, including WBTC, ETH, and their native token, 1INCH. When all was said and done, the fund had allocated an eye-popping $44.22 million to these 1INCH and other investments.
– Ethereum (ETH): Of $28.85 million, 11,198 ETH were acquired. For the average price of $2,577 per coin, the total purchase was made.
– Wrapped Bitcoin (WBTC): $14.21 million was spent on obtaining 160.8 WBTC, buying them at an average price of $88,395.
– 1INCH Tokens: The leftover $1.15 million was utilized to purchase 4.7 million 1INCH tokens, with an average price of $0.245 per token.
Nonetheless, even with substantial funding, the team now finds itself in a down position, with the prices of both ETH and WBTC having dropped significantly since those purchases. This is a tough spot, especially for a fund that has earned a reputation for making profitable trades.
1inch 团队投资基金这次是要准备亏损割肉了？
他们在过去 1 小时里以 $86,578 的价格卖出了 37.9 枚 $WBTC ($3.28M)；以 $2,072 的价格卖出了 511 枚 $ETH ($1.05M)。1inch 团队投资基金是在 2/2-3/10 期间花费了 4422 万 U 购买了 WBTC、ETH 跟 1INCH：
$2885 万购买了 11,198 枚 ETH，均价… https://t.co/arJAV59aCe pic.twitter.com/Hm3wwA6t1Y— 余烬 (@EmberCN) March 24, 2025
For example, ETH, which was purchased at an average price of $2,577, has declined in the present market to around $2,072, bringing a heavy load of unrealized losses. WBTC, bought at an average of $88,395, has also depreciated in value, causing the fund’s overall performance to suffer even more.
A Strategic Sell-Off or Preemptive Loss Mitigation?
Given the downturn, the recent actions of the 1inch team—specifically, when they sold 37.9 WBTC at $86,578 and 511 ETH at $2,072—have raised questions among some folks in the crypto space. Are they trying to cut their losses? That’s what it looks like; and if so, it could indicate that the fund intends to preserve some capital and limit further losses, especially as the value of their holdings seems to be on a continued downward trajectory.
The choice to sell WBTC and ETH might have been a reaction to the wider market’s unsatisfactory performance, which has affected the worth of numerous assets throughout the cryptocurrency sector. By truncating part of their holdings, the 1inch team could be aiming to release capital for the more auspicious opportunities that surely lie in wait, for a time when the cryptocurrency market as a whole has righted itself.
One possible interpretation of the situation is this. The 1inch team, which has previously traded WBTC, ETH, and 1INCH profitably, is now conducting a sell-off. Why? It might be part of a tactical approach to minimizing risk and avoiding larger losses in the mix of assets mentioned. If these are struggling in the market right now—and the next paragraph lays out some specifics for that—they might make a much wiser investment down the line when the market oscillates back.
Are the 1inch Team’s Trades Still Profitable in the Long Run?
Even though the investment fund of the 1inch team may be currently underperforming with its held assets, it is vital to acknowledge that this fund has a notable past. In that past, the fund has shown a strikingly high win rate. This history gives the appearance of a team that invests with a long-term strategy and a potential to ride out the storm for future increased market value of its current holdings.
The team is well-positioned as market players who are capable and knowledgeable about the ups and downs of the market. They have been successful in trading big-name cryptocurrencies such as WBTC and ETH. So, as not to be caught up in or a part of any kind of ‘real or perceived’ market manipulation, if the team is behind this recent sell-off, it is likely a temporary measure to reduce risk while it (or we) prepares for a potential market recovery.
For example, if the prices of ETH and WBTC were to stabilize or increase in the next few months, the 1inch team might consider re-entering the market at prices more suitable for them. Their past experience and success make it at least somewhat plausible that they have future growth in mind, even if they are taking some short-term losses right now.
Moreover, the 1INCH token holdings of the team, which also constitutes part of their investment fund, remain for now unliquidated. This may be a sign of a longer-term commitment to their own project, especially given that the 1inch protocol is still the linchpin of the team’s ecosystem. Holding 1INCH, in what token may one day be a deliberate down-market choice to support the token’s growth and reassure the platform’s potential in the eyes of its users, is pretty sensible. The only reason not to is if the team is no longer inclined to support the token.
The Broader Market Context: Crypto Volatility Continues
Right now, the 1inch team is making some big moves, and it’s not clear yet just how they’ll affect the crypto markets—if they do at all. The reason for this uncertainty is that the crypto markets are down pretty much across the board, with the prices of big-name assets like Bitcoin and Ethereum swinging wildly up and down, while many lesser-known tokens held by the 1inch team have also dropped considerably in value.
Nevertheless, this kind of volatility is not new to the crypto sphere. For investors, it can be a hard pill to swallow, but it is transitory. What we have seen of late is an illustration of the kind of downward price move that happens when the market is very weak. In the crypto space, this, too, shall pass. And for those with a proper investment thesis, time horizon, and fortitude, the next instance of parity for coins to a dime-a-dozen will happen, too, again, and always. Acceptable risk is a part of what it takes to play any game.
Conclusion: A Calculated Move or an Act of Desperation?
1inch team’s action of selling portions of their WBTC and ETH holdings might be a larger strategy to mitigate their losses in the short term and to position themselves for potential future opportunities. Despite this fund being underwater on many of its current investments, one can rely on the strong track record of 1inch in making profitable trades in the past and the solid expertise that its team has in the crypto space to believe that what they’re doing now is likely a calculated move and not a sign of desperation.
In the next few weeks, it will be interesting to see if the 1inch team reinvests or opts to just hold their current positions. The 1inch team’s future profitability and success could hinge on how well they adapt to the fast-moving conditions of the crypto space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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