The solution without the answer:

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Solution: It's actually quite simple :) After starting the sequence with 1, each term in the sequence consists of groups of two numbers based on the previous term - the first being the quantity and the second specifying which digit.

Example: the first term is 1, which has "one 1" in it, therefore 11.
11 has "two 1's" in it, therefore 21.
21 has "one 2 and one 1" in it and therefore 1211.