The Log Property of 1INCH Reveals Danger from the 14 Million Token Dump

A recent market event has demonstrated that the transparency and traceability of blockchain—its inherent openness—can also be a double-edged sword when on-chain data reveals the exit strategies of insiders. When Altcoin market liquidity remains fragile, a single large-scale sell-off decision by a major holder is enough to trigger a rapid price decline with no signs of stopping.

Warning Signs from On-Chain Data

According to blockchain records, an address associated with an investor or founding team member has just executed a decisive liquidation. On-chain data reveals the scale of this sell-off:

• Volume: 14 million 1INCH tokens
• Estimated value: approximately $1.83 million
• Direct price impact: A massive sell order cleared all buy walls, causing 1INCH to plummet from $0.1385 to $0.129

Recent data (as of February 5, 2026) shows 1INCH trading at $0.10, with a 24-hour decrease of -6.92%, reflecting ongoing selling pressure. Even more concerning is that the top 10 addresses hold 61.19% of the circulating supply, indicating a highly concentrated distribution.

Early Investor’s Dump: From $0.17 to $0.13

These tokens were not acquired from the open market but originated from vesting contracts allocated to early project contributors. The address received 15 million 1INCH through a long-term reward plan initiated over a year ago.

However, their “exit” occurred in two steps:

First attempt: Selling 1 million tokens at a relatively favorable price of $0.17, possibly to test the market.

Final decision: Liquidating the remaining 14 million tokens at $0.13, indicating a sudden strategic shift. This move suggests that early investors or team members have lost confidence in the short-term recovery prospects of 1INCH.

Tokenomics Risks: When Concentration Threatens the Market

This event is not isolated. It is clear evidence of concentration risk within tokenomics—when a large portion of tokens is held by a few individuals who decide to sell simultaneously. No amount of technical analysis can prevent the chart from breaking.

The psychological domino effect quickly spreads to smaller holders, who begin panic selling. Liquidity is severely impacted, bid-ask spreads widen dramatically, and entering or exiting positions becomes more difficult.

Lessons Learned: Blockchain Transparency

The log nature of blockchain—where every transaction is immutably recorded—can serve as an early warning system for potential dangers. While it cannot prevent direct losses for investors, it provides valuable data to analyze the behavior of insiders.

The 1INCH sell-off serves as a reminder that concentration risk within token structures is a real threat, and no technical indicator can fully safeguard against it. The “exit” decisions of key figures always exert a strong psychological impact on the entire market.

Note: This article is for informational and analytical purposes only and does not constitute investment advice. Please conduct thorough research and careful consideration before making any financial decisions.