Decentralized finance (DeFi) platform 1inch Network has closed a $175 million Series B funding round led by Amber Group, valuing the project at $2.25 billion, 1inch said in a blog post on 1 December.
According to the announcement, the initial investment target of 1inch was $70 million, but due to the huge demand from “valuable backers” a decision was made to increase the target to $175 million. Around 50 investors participated in the Series B, amongst which were VanEck, Jane Street, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund. Sergej Kunz, co-founder of the 1inch Network, said in a statement:
“The next $1 trln of assets entering DeFi will come from institutions rather than retail users, and 1inch would like to facilitate entry for them. We have already started work in that direction by attracting some key players from the traditional finance markets, and this collaboration will only accelerate over the next few years.”
The newly acquire funds will help 1inch Network attract and onboard institutional clients, build new protocols, expand the utility of its native 1INCH token, and address the ongoing regulatory changes that could impact the DeFi market. The project also plans to significantly expand its contributor team, and expects it to “more than double in size” over the next few years.
The project further stated that by adding several dozen new participants to the 1inch Network, it could also increase the decentralization of the 1inch DAO, making it more democratic by “allowing everyone’s votes to matter”.