The ultimate battlefield: 1inch cofounder Sergej Kunz is coming for centralized exchanges
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where I break down the world of Web3, crypto, and blockchain in simple terms. Today, we’re diving into how 1inch co-founder Sergej Kunz is shaking up the DeFi space by challenging centralized exchanges, based on recent insights and updates. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, what’s all this buzz about 1inch and why is Sergej Kunz targeting centralized exchanges?
What is 1inch and DeFi Basics
John: Great question, Lila. 1inch is a decentralized exchange aggregator that helps users find the best trading rates across multiple DeFi platforms by splitting orders for optimal deals. Think of it like a smart shopper app for crypto swaps, launched back on 2020-08-10, and it’s grown massively since then.
Lila: DeFi? That sounds like some sci-fi term. Can you explain it simply?
John: Sure thing! DeFi stands for Decentralized Finance, which means financial services built on blockchain without middlemen like banks—it’s like borrowing from a community pot instead of a traditional lender. As of now in 2025, DeFi has over $100 billion in total value locked, according to sources like Cointelegraph. (And hey, if DeFi were a party, 1inch would be the DJ mixing the best tracks seamlessly.)
Sergej Kunz’s Background and Vision
Lila: Okay, got it. So who is Sergej Kunz, and what’s his big idea here?
John: Sergej Kunz is the co-founder of 1inch, a key figure in DeFi since he helped start the project in 2019. In a recent interview on 2025-10-02 with Cointelegraph, he predicted that centralized exchanges (CEXs) will evolve into just frontends for DeFi protocols within the next 5 to 10 years. This means users might interact with familiar interfaces, but the backend would be decentralized, uniting fragmented liquidity across chains.
Lila: Frontend? Like the face of the app?
John: Exactly—it’s the user-friendly part you see and click on, while the real magic happens behind the scenes on blockchain. Kunz envisions this shift making finance more seamless, as he discussed in his CryptoSlate feature on 2025-10-05. In the past, CEXs dominated trading, but with DeFi innovations, they’re facing competition.
DeFi vs Centralized Exchanges: The Current Landscape
Lila: How do DeFi and centralized exchanges differ right now?
John: Centralized exchanges, like Binance or Coinbase, act as custodians holding your assets, making trades quick but with risks like hacks or regulatory issues. DeFi, on platforms aggregated by 1inch, lets you control your own keys and trade peer-to-peer on blockchains like Ethereum. As of 2025-10-06, centralized exchange spot volume dropped nearly 28% in Q2 2025, per CryptoSlate reports, while DeFi continues to grow by uniting liquidity.
Lila: That drop sounds big. Is DeFi really taking over?
John: It’s gaining ground, but not overnight. For example, 1inch’s cross-chain swaps allow seamless trading across networks like Polygon or Binance Smart Chain, something CEXs are starting to mimic. (If this were a race, DeFi’s like the underdog sprinter catching up with clever shortcuts.)
Recent Developments in 1inch and DeFi
John: Looking at updates, on 2025-10-01, 1inch announced a rebrand to emphasize uniting DeFi with global finance, as reported by Morningstar and PR Newswire. This includes new tools for better cross-chain functionality, aiming to make DeFi indistinguishable from traditional finance without centralization. Sergej Kunz noted that traditional users will come on-chain, boosting adoption.
Lila: Rebrand? What changed?
John: It’s more about signaling maturity—the logo and mission got a refresh to focus on bridging worlds. In an older post from 2021-08-31 on their official blog, Kunz highlighted how DEX aggregators like 1inch drive DeFi growth, and that’s evolving now with features like seamless swaps. Plus, with regulatory news from sources like CoinDesk, DeFi is adapting to global standards.
Potential Risks and Safeguards
Lila: This all sounds exciting, but are there risks in switching to DeFi?
John: Absolutely, and it’s important to highlight them. Smart contract vulnerabilities can lead to exploits, as seen in past incidents like the Ronin Bridge hack on 2022-03-23, which lost over $600 million. For SMEs, a OneSafe Blog post from 2025-10-03 warns of regulatory challenges and security risks in DeFi integration.
John: To safeguard, use trusted wallets, enable two-factor authentication, and start small. Here’s a quick list of tips:
- Research protocols on sites like DeFiLlama for TVL and audits.
- Avoid connecting to unverified dApps—stick to aggregators like 1inch.
- Keep software updated to prevent phishing attacks.
- Diversify holdings across chains for better liquidity access.
Lila: Good to know—safety first!
Practical Use Cases and Tips
John: In practice, 1inch helps with things like swapping tokens at the best rates or providing liquidity for yields. For instance, a user might swap ETH for USDC across chains without high fees, something centralized exchanges charge more for. As Kunz mentioned in his 2025-10-02 TradingView News interview, this is pioneering the future of finance.
Lila: Any beginner tips for trying this?
John: Start with a small amount on a testnet if available, or use 1inch’s app directly. Connect a wallet like MetaMask, search for swaps, and let it find the best path. (Just remember, it’s like online shopping—compare prices before checking out!)
Looking Ahead: The Future of Crypto Exchanges
Lila: So, what’s next for DeFi and these exchanges?
John: Looking ahead, Kunz predicts CEXs fading into DeFi interfaces by around 2030-2035, based on his 2025-10-02 Cointelegraph statements. With ongoing innovations, like 1inch’s rebrand pushing for global integration, we might see more hybrid models. Regulatory clarity, such as potential SEC guidelines, could accelerate this shift.
John: Wrapping this up, it’s clear Sergej Kunz and 1inch are paving the way for a more decentralized financial world, making crypto accessible and efficient for everyone. Remember, stay informed and trade smartly. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—that makes the DeFi vs. CEX battle less intimidating. Key takeaway: DeFi’s rising, so let’s keep learning!
This article was created using the original article below and verified real-time sources:
- The ultimate battlefield: 1inch cofounder Sergej Kunz is coming for centralized exchanges
- Centralized exchanges will be DeFi front ends in 5–10 years: 1inch co-founder
- 1inch rebrands to reflect broader mission uniting DeFi and global finance
- 1inch cofounder Sergej Kunz is coming for centralized exchanges