The 1inch team investment fund has recently liquidated a large number of key assets

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)

The 1inch team investment fund has recently liquidated a large number of key assets in a move that is not so surprising, seeing as the sustained bearish market has put the fund "underwater" on many of its current investments.

This past hour saw the fund sell off 37.9 WBTC at $86,578 and 511 ETH at $2,072.

The move has naturally led some to speculate on what the 1inch team is up to, especially given that the fund had previously been very open about making a series of investments in February and March.

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.

However, 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.

For instance, 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. On the other hand, 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 later when the market swings 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 performing poorly 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 1