1inch Exchange Gets $1.75m in Series B Funding

In the cryptocurrency world, there are two types of exchanges that everyone talks about; centralized exchanges (CEX) and decentralized exchanges (DEX). CEX, like Binance, or Coinbase, are currently the largest in the world. Its custody options, simplicity, and connectivity to banks make it an easy option for many.

Meanwhile, DEX, like Uniswap and 1inch, have been growing in popularity due to the lack of centralized authority. When trading on a DEX you do not need to give custody of your tokens to anyone. No one can freeze your account or limit your trades.

Crypto purists and crypto leaders like Vitalik Buterin believe that decentralized exchanges are the future for cryptocurrencies. With no gatekeepers, anyone can list their token or choose to stake their tokens for rewards.

This freedom has made the exchanges come under heat from the SEC – and other government officials – due to the lack of customer background checks or oversight. The solution to this issue is not easy as any type of KYC would need a centralized authority.

The leader of the DEX pack has always been Uniswap. Launched in November 2018, Uniswap made headlines when they rewarded its early users with a massive airdrop. The average amount of UNI token that was distributed was valued at around $2000 for each wallet that had interacted with the platform. This brought decentralized exchanges into fame, and from there many other DEX platforms have been born.

1inch has always been in the shadow of Uniswap. Its platform brings new features and cross-platform support for trades, but users continue to show that trading on 1inch is much more expensive.

1inch however has been working to make its platform more regulatory and compliance-friendly. This recent work has allowed for a very successful Series B funding round worth $1.75m.

With this new influx of cash, many will be looking at 1inch to bolster its platform and become the leader in decentralized exchanges. 1inch has stated that this funding round will help them build a platform that can cater to institutional investors. This new platform for institutional customers will be called 1inch Pro. Holders of 1inch’s native token 1INCH will be hoping this new utility will help bring the price to new highs. 

Tokens in the funding round were sold for almost half the current value. While this is great at bringing in new investors, many holders worry about these venture capitalists dumping tokens on the market as they instantly have a 100% gain.

Keep an eye out on 1inch going forward as this funding round might bring them out of the shadow [of Uniswap] and into the spotlight.

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Written by Tudor

Works as a developer and helps keeps the digital cogs turning. Leave them alone, they're busy.

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