What is 1inch Coin? Assessing its Potential and Pros & Cons 1INCH

With the Defi trend exploding in recent years, it’s no surprise that many DEX platforms have emerged and attracted a lot of investors. The 1inch exchange has emerged as a “leading DEX aggregator,” helping you find the best trading place.

So what exactly is the 1inch exchange? What is 1inch coin, does it have potential, and should you invest in 1inch? Let’s review this project in detail to find the answer.

Contents

1 What is 1inch coin, and should you invest in it?

What is 1inch coin, and should you invest in it?

What is the 1inch exchange?

The 1inch exchange is a decentralized exchange (DEX), but instead of operating like a typical DEX, it is an aggregator tool, distributing orders among several different DEXs to find the best possible rate.

1inch’s technology allows it to provide the best trading prices instantly from cryptocurrency exchanges. Therefore, 1inch users save a lot of time and money by accessing the best DEXs with the lowest fees.

1inch currently aggregates prices from decentralized exchanges like Uniswap, Balance, 0x, and Mooniswap, and its own 1Inch liquidity protocol. As of this writing, the 1inch exchange has integrated with 43 platforms on the Ethereum blockchain, 25 on the Binance Smart Chain, 14 on Polygon, and several on the blockchains of Optimism and Arbitrum.

The 1inch exchange was created in 2019 by Sergej Kunz and Anton Bukov during the ETHNewYork hackathon. Since then, the network has raised about 15 million dollars in funding. These include funding from Binance Labs, Pantera Capital, and Galaxy Digital.

Features of the 1INCH exchange

Strengths

1inch Exchange has not experienced any security breaches or hacking incidents.
The 1inch interface is user-friendly and easy to use.
1inch does not charge transaction, deposit, or withdrawal fees.
1inch ensures high liquidity and the best rates by aggregating DEX order books while limiting transaction fees.
Using 1inch tokens can further reduce transaction costs.
Adding the 1 inch liquidity protocol increases productivity.
Best price — 1inch provides the best price at the time of transaction thanks to its integration with several DEX exchanges;
Low fees — the platform has low transaction fees due to the use of smart contract technology;
Integration with wallets — 1inch integrates with many popular wallets such as MetaMask, Trust Wallet, Tangem Wallet, Ledger, Trezor and others;
High speed — by utilizing multiplexing technology, 1inch provides fast transaction processing;
Multiple tokens — many tokens are available on the platform, including ERC20, BEP20, TRC20 and others.

Weaknesses

This 1inch exchange does not support the use of fiat currency.
Although 1inch is quite user-friendly, beginners may find it difficult to grasp how to use 1inch Exchange.
The “Infinite Unlock” feature could be a weakness in the future. Although it saves fees and transaction time, unlocking each transaction separately is safer.
Limited choice — although there are many tokens available on the platform, the choice is still limited compared to centralized exchanges;
Security risks — like any decentralized platform, 1inch is not immune to possible security threats such as hacker attacks and smart contract hacks;
High volatility — the cryptocurrencies available on the platform can be extremely volatile, which can lead to large losses if traded incorrectly;
Need to have Ethereum — Ethereum is required to use 1inch, which can be a problem for some users.

What is 1inch coin?

1INCH coin is the ERC-20 utility token of the 1inch exchange, used for managing the liquidity protocol and DEX aggregator.

Owners of 1INCH coins have voting rights to decide on issues concerning the 1inch exchange.

There are a total of 1.5 billion 1INCH, of which 30% are allocated to the 1inch community. The 1inch team has chosen to distribute these tokens through airdrops, and the total supply is expected to be distributed over a period of 4 years.

The remaining supply of 1INCH tokens will be used for development (14.5%) and gradually distributed to initial investors and team members (55.5%).

*** Besides running on the Ethereum blockchain, on February 25, 2021, the 1inch Foundation deployed the 1INCH token on the Binance Smart Chain, making the 1 inch aggregator protocol and liquidity protocol available to BSC users.

Initially, 10 million 1INCH tokens were issued on BSC and will be used as liquidity in the Binance Bridge for transactions between Ethereum and Binance Smart Chain.

How does 1inch coin work?

To understand more about what 1inch coin is, let’s explore how the 1inch exchange operates. Suppose you want to buy some Ethereum on a decentralized exchange like Uniswap, 0x, or PanCakeSwap. When you look at the price of ETH on these DEX platforms, you might notice that they vary. Currently, there are many DEX platforms, and checking all of them for the best ETH price can be very time-consuming and difficult.

By using the 1inch exchange, you can do this easily. 1INCH aggregates prices from different decentralized exchanges and shows you the best or cheapest transactions for trading Ethereum.

1inch also allows users to earn passive and active income through:

Token Trading: All users can earn 1INCH tokens by trading their Ether and ERC20 Tokens.
Liquidity Mining: Users can mine 1INCH tokens by locking them in the network’s Liquidity Pool. This is done for a minimum of 300 days, during which they cannot trade or withdraw money from their wallet.
Governance Voting: Using 1INCH tokens, users can participate in governance voting to decide the best development path for the platform community.

Today’s 1INCH Coin Price:

1INCH/USD

$ 0.39035

1NCH Coin Price Fluctuations Over the Past 6 Months:

What is the Potential of 1inch Coin?

By continuously expanding its popularity in the Defi space, 1INCH has positioned itself as one of the best cryptocurrencies to buy right now.

There are several factors that will drive the value of 1INCH coin in the future, including:

1INCH’s collaboration with the NFT animation series “Take My Muffin”

The 1inch team will sponsor this NFT animation series. Additionally, it will provide technical expertise with significant developments in the Defi field. This is the first animated series to be sponsored by cryptocurrency. This collaboration will be an important effort for 1inch to gain broader exposure in the DeFi and NFT market.

The collaboration between 1inch and Binance Smart Chain

Another important factor that has boosted the price of 1INCH recently is the launch of the exclusive 1INCH token on the Binance Smart Chain.

This will provide users access to many DEXs based on Binance and leading protocols such as BurgerSwap, PancakeSwap, Venus, StreetSwap, BakerySwap, JulSwap, StableSwap, etc. Moreover, users who have registered with 1inch can seamlessly switch between BSC and Ethereum.

Launch of 1INCH aggregator protocol ver.3

High gas fees have always been a significant concern for users in the cryptocurrency field. Users are currently paying an average of $20 for Ethereum transactions. 1Inch coin, with the launch of version 3, has brought a solution to address this important issue.

Thanks to the latest upgrade, 1inch v3 facilitates lower gas fees. Furthermore, the benefits of the protocol are not limited to reducing gas fees but also for cryptocurrency swapping. For example, previously, swapping tokens on Uniswap and its branches would be cheaper. But with v3 swapping, ETH for DAI on 1 inch is now 10.3% cheaper than the same operation on Uniswap.

Integration of Bitpay with 1INCH

The 1INCH project earlier this year announced a partnership with BitPay, the world’s largest Bitcoin and cryptocurrency payment service provider. With this integration, Bitpay wallet users can access all the DEX aggregation functions of 1INCH to find the best deals from multiple liquidity sources.

=> More partnerships and updates of 1INCH will make more users accept 1INCH, driving its price even higher.

Should You Invest in 1inch Coin?

So, should you invest in 1INCH coin? There are many factors why you should invest in 1inch right now, but there are also challenges and downsides. Let us summarize:

1INCH DEX has immense potential for growth. Its widespread adoption will increase along with the boom of Defi.
Investing in 1INCH coin, you can also earn profits by staking, and earn interest from it.
1INCH coin has a talented founding team, experienced in working with blockchain projects. Additionally, 1inch boasts over 20 partners and is present in over 10 countries, and they are striving to build a strong 1INCH project and community.
If other DEX coins like Uniswap, Pancakeswap, etc., face fierce competition, 1INCH supports the development of these DEX platforms. As long as DEX platforms gradually gain a foothold in the market, the potential for growth of 1INCH is very large.

In general, 1INCH coin currently has many benefits and a promising future. The biggest snag for 1INCH coin at this time is that it needs to gradually build a more transparent community to attract more investor trust. Only time will tell whether it will succeed, but with the increase in the trend of Defi and DEX platforms like now, personally, we rate 1INCH as a good coin for long-term investment.

However, compared to the top coins currently, the potential of 1INCH is not too outstanding, so if you want to invest in them, you should only put a small amount of capital into it, lest you miss the opportunity with other cryptocurrencies, and the cryptocurrency market contains many risks.

IN SUMMARY

♣ What is 1inch coin? It is the currency of the 1inch platform, an aggregator protocol for DEX platforms on multiple blockchains, including Ethereum, BSC, Polygon, Optimism, and Arbitrum.

♣ 1inch has the 1INCH token, which is used for governance, staking, reducing transaction fees, and contributing to the liquidity pool to earn profits.

♣ The future development of 1INCH coin largely depends on the popularity of DEX platforms in general.

♣ The price of 1INCH coin has been quite volatile recently and is strongly influenced by the general market fluctuations.

♣ 1INCH coin can be considered for long-term investment, but its potential is not too prominent, and it is not yet popular with many investors, so you should only invest a small amount of capital in it.

♣ At the current time, the price of 1INCH is $ 0.39035, ranked 187 in the market by market capitalization.

Hopefully, with the information provided about 1inch Exchange and 1inch coin, you have understood what 1inch coin is, its potential, and decided whether to invest in this coin or not. We wish you wise decision-making and successful investing.