1inch's Sergey Kunz Takes on Centralized Exchanges

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Hello, I'm John. I'll be summarizing the hot topics surrounding the future of DeFi.

Hi, I'm John. Today, I'd like to talk about the vision of Sergej Kunz, co-founder of 1inch, a company that's garnering attention in the DeFi (decentralized finance) world, in an easy-to-understand way for beginners. For those of you who are just starting to get interested in cryptocurrencies, let's take a look at how DeFi is evolving.

Unlike centralized exchanges (CEX), DeFi is a system that allows direct trading on the blockchain, and has been attracting increasing attention recently. Why is it important now? As of 2025, DeFi trading volume is increasing, and there are signs that it may threaten the market share of CEX. This could lead to a more transparent and accessible financial system, broadening everyone's investment and trading options. If you're starting cryptocurrency trading for the first time, it's a good idea to first understand how to choose a reliable exchange. Here's a simple comparison of major services:How to Choose and Compare Cryptocurrency Exchanges for Beginners

What is 1inch? Understanding a powerful tool in DeFi

1inch is a popular decentralized exchange (DEX) aggregator in the DeFi (decentralized finance, financial services using blockchain technology without a central administrator) field. It is a tool that automatically finds the best trading rates from multiple DEXs and exchanges them, designed to allow users to swap (exchange) cryptocurrencies at better rates. In the past, the high gas fees (transaction fees) of the Ethereum network were an issue, but it is now easier to use thanks to its progress in supporting Layer 2 (a secondary blockchain that speeds up transaction processing).

Sergej Kunz, co-founder of 1inch, is known as a DeFi innovator. He argues that DeFi will be an alternative to centralized exchanges (CEXs, centrally managed platforms such as Binance and Coinbase). As DeFi technology evolves in the future, the role of CEXs is likely to change.

The history and evolution of 1inch

1inch was founded by Sergej Kunz and Anton Bukov in 2020. In the past, fragmentation of liquidity (the amount of assets available for trading) on Ethereum was a problem, but 1inch has taken the approach of integrating multiple DEXs to solve it. Currently, as of October 2025, 1inch is enhancing cross-chain (between different blockchains) swaps, improving the usability of DeFi.

Sergej Kunz's Vision: The Future of DeFi Taking on CEX

Sergej Kunz has stated that DeFi will be the "ultimate battlefield" to take market share from CEXs. In an interview with CryptoSlate on October 5, 2025, he emphasized that DeFi consolidates fragmented liquidity and promotes seamless cross-chain swaps. In the past, DeFi was often shunned due to high gas fees, but improvements have been made and trading volumes on CEXs are declining.

Furthermore, Kunz predicts that within 5 to 10 years, CEXs may become the front end (user interface) of DeFi. This means that CEXs will use DeFi technology behind the scenes, accelerating the spread of DeFi. The key to this will be regulatory progress and technological maturity.

Breaking News: 1inch Rebrands and DeFi Expansion

On October 1, 2025, 1inch announced a rebranding and stated its mission to integrate DeFi with traditional finance. This accelerated DeFi's move closer to the traditional financial system. Kunz stated, "DeFi will no longer be distinguishable from traditional finance, but it will be a transition to on-chain (blockchain) rather than centralization."

In addition, in an October 2, 2025, TradingView News article, Kunz predicted the demise of CEXs and pointed to the rise of DeFi aggregators. Data showing that CEX spot trading volume fell by approximately 28% in the second quarter of 2025 also supports the momentum of DeFi.

DeFi vs CEX: Pros and Cons

The biggest appeal of DeFi is its transparency and user-driven trading. CEXs are convenient, but there are concerns about hacking risks and centralization. On the other hand, DeFi is run by smart contracts (automated programs), which makes it highly reliable, but complicated for beginners. Now, tools like 1inch are filling that gap.

The benefits of DeFi: 24-hour trading, low fees (when using Layer 2), and retention of ownership.
Advantages of CEX: Easy to use interface, fast transactions and customer support.
Common Risks: Price fluctuations, security threats (e.g. smart contract vulnerabilities).

In the future, if DeFi absorbs the functions of CEXs, a hybrid model will likely emerge. However, please note that investment is at your own risk and market volatility should be taken into consideration. In terms of regulations, please comply with the regulations of each country and do not forget to file tax returns.

Risks and Countermeasures: Tips for Enjoying DeFi Safely

DeFi is attractive, but it does pose security risks. Learning from past hacking incidents, it is now recommended to use multi-sig wallets and audited contracts. If you are a beginner, start small and use a trusted wallet (e.g., MetaMask).

Also, be aware of changing regulations. As of 2025, DeFi is becoming increasingly strict in some countries. As a security measure, enable 2FA (two-factor authentication) and be cautious with unknown DApps (decentralized apps).

Future outlook and tips for use

In the future, DeFi's cross-chain functionality will likely evolve further, and the role of CEXs will likely diminish. As Kunz predicted, DeFi may become mainstream in 5 to 10 years. Try 1inch and experience the convenience of DeFi for yourself. If you're unsure which company to start with, compare fees, the types of products available, and ease of use of the UI. For a more detailed comparison,click here.

John's summary and thoughts

The future of DeFi is bright, and it's exciting to see leaders like Sergej Kunz taking on the challenge of CEX. Even beginners can broaden their horizons by learning a little at a time. Just be safe and have fun. I look forward to the day when DeFi will realize more inclusive finance.

This article has been compiled and fact-checked by the author, based on the following original articles and public information:

How to choose and compare cryptocurrency exchanges for beginnersclick here .

1inch Founder Sergey Kunz: Fighting Centralized Exchanges