DeFi misstep: German misses US$1.8 million airdrop

1inch (1INCH) has rewarded the loyalty of its users by giving them tokens worth the equivalent of $100 million for Christmas. But it wasn’t cause for celebration for everyone.

The Decentralised Finance (DeFi) project 1inch is a decentralised exchange (DEX) aggregator. The decentralised exchange uses smart contracts and splits a single transaction across multiple exchanges. Simply put, the platform uses liquidity from a variety of decentralised exchanges to optimise trades.

In the last three months alone, the capital flowing Wealth Matrix through 1inch’s aggregator has exceeded a daily trading volume of over 100 million US dollars several times.

1inch Exchange Volume
Source: Coingecko
On 25 December, the 1inch team announced that it was distributing a total of 90 million 1inch tokens to users of the DeFi platform.

DeFi 1inch Exchange
According to the statement, the initial token offering is six per cent, as there are a total of 1.5 billion 1inch tokens that are gradually coming to market. Just like DEX Uniswap, 1inch aims to promote the decentralisation of the project through the airdrop.

DeFi project 1inch causes Ethereum fees to skyrocket
As a result of the airdrop and the associated token claiming process, Ethereum transaction fees shot up.

Ethereum fees

With this, the 1inch airdrop joins the ranks of events that have impacted Ethereum fees the most this year.

Meanwhile, over 30,000 wallets have already claimed over 70 million 1inch tokens, which have a current equivalent value of more than $80 million. Only 21 per cent of those entitled to Airdrop have not yet withdrawn their tokens. Here you can find out if your wallet was also eligible for an airdrop.

A 23-year-old German misses out on 1.8 million US dollars
But not everyone was able to enjoy the airdrop. German DeFi user Timo Haring says on Twitter that he tried to create over 500 Metamask wallets in the run-up to the airdrop in order to qualify for the airdrop. To do this, he completed a transaction on 1inch with every single wallet. However, not a single one of the wallets received eligibility for the airdrop. This was because the transaction amount he traded on 1inch was too low.

If the @timoharings had only used 20 US dollars instead of 17 US dollars per trade, he would now have been 1.8 million US dollars richer. In total, Haring says he paid US$8,000 in Ethereum transaction fees during his venture on the DeFi platform.

He manually executed every single transaction on the 500 Metamask wallets and expected a total return of 250,000 US dollars.

Will Decentralised Finance users soon receive even more airdrops?
Whether other DeFi projects will also make an airdrop for their loyalty community in the future remains to be seen. On Youtube, Chico Crypto, who already guessed the 1inch airdrop, speculates that there will be more airdrops of this kind. In his video, he takes a closer look at 11 different DeFi projects that he thinks are planning an airdrop.