1Inch raises $1.75M in series B round

Everyone in the crypto world talks about two types of exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX). The current leaders at the moment in CEX space are Binance and Coinbase.

Many people prefer the two because of their custody alternatives, convenience, and bank connectivity.

Meanwhile, due to the lack of centralized authority, DEX such as Uniswap and 1inch, has grown in popularity. When trading on a DEX, you don’t have to grant anyone custody of your tokens and no one can put a stop to your trading or limit to your account.

Decentralized exchanges, according to crypto purists and leaders like Vitalik Buterin, are the way of the future for cryptocurrencies. Anyone can advertise their token or opt to stake their token for rewards because there are no gatekeepers.

Because of this independence, the exchanges have faced heavy criticism from the SEC and other government officials – for a lack of customer protection. This main challenge is that any sort of KYC requires a centralized authority.

Uniswap has always been the DEX’s trailblazer. Uniswap made waves when it was launched in November 2018 and rewarded its early users with a big airdrop. For each wallet that interacted with the platform, the average amount of UNI token given was worth at roughly $2000. This helped to popularize decentralized exchanges, and many more DEX platforms arose as a result.

Uniswap has always cast a shadow over 1inch. Although its platform adds additional features and cross-platform trade capabilities, traders continue to report that trading on 1inch is substantially more expensive.

1inch, on the other hand, has been working to improve its platform’s regulatory and compliance capabilities. This new work paved the way for a $1.75 million Series B investment round.

Many will be looking to 1inch to enhance its platform and become the leader in decentralized exchanges with this new influx of funds. According to the company, this round of funding would help 1inch establish a platform that will attract institutional investors. 1inch Pro will be the name of this new platform for institutional customers. The native token holders — 1INCH— will be hopeful that this additional utility will assist the price of their token reach new highs.

Tokens were sold for about half their current value during the financing round. While this is beneficial in terms of attracting new investors, many token holders are concerned that venture capitalists would dump tokens on the market once they have made a 100 percent profit.

Watch out 1inch in the coming months, as this investment round might get them out of the shadow of Uniswap and bring them into the limelight.