The Kinto (K) token is trending in the crypto space but for the wrong reasons, leading to an 85% price crash in just 24 hours. Kinto is an Ethereum Layer-2 project and has hit investors with massive news, leading to the downfall and criticism on social media platforms.
Kinto Announced Shut Down, Token Price Crash
The Kinto holders have been hit with a massive shock today, as the project announced the shutdown of its operation in an X post, effective from September 30. Notably, the project faced a major exploit in July, where hackers drained 577 ETH, equivalent to $1.6M from its liquidity pool, pushing the Kinto token price to an all-time low.
- Source: X, KintoXYZ
Although they raised $1M debt financing to restart operations and even issued a new KINTO token, the debt didn’t stop them from filing. Even the crypto market conditions weren’t entirely favorable, with major corrections in Jobless Claims Data and others, restricting price recovery.
Now, after nearly two months and despite attempts to recover the stolen funds, the project has decided to shut down, resulting in its 85% crash today. In the X post, they revealed that despite attempts, they failed to raise new funding, resulting in wind-down and unpaid salaries of the employees since the exploit itself.
Kinto Token Price Performance Today
The Kinto token price chart clearly reveals the impact of the exploit and today’s decision, as it faced an 85% decline, nearing its all-time low mark. Within minutes of the shutdown announcement, the price plummeted, losing 85% in 24 hours, 92% over the month, and is currently trading at $0.4019 with $790.19k in market capitalization.
Notably, in mid-August, its market cap was above $14.5M but it has now moved down to $1M. Now, the community is greatly unhappy; SatyaXBT says that it was a terrible experience from the beginning.
He claimed that the presale was disappointing, the launch price was low, and even the airdrop had issues despite receiving $20M funding from Brevan Howard Digital. Later, the exploit ruined it further.
There are also allegations of pump and dump and planned accidents, but the shutdown announcement has left investors stranded and waiting for reimbursements.
Reimbursements & Next Steps for Users
Kinto’s remaining assets, worth $800k, have been consolidated into a foundation-controlled safe and will go to the Phoenix lenders. They will recover nearly 76% of their loan principal. The Morpho hack victim can receive $1.1k each from $55k goodwill grant. Notably, the founder, Ramon Recuero, will fund these with $130k of his personal funds.
Due to the shutdown, the users will have until September 30 to withdraw their funds from Kinto’s Layer-2. After which, they will have to use a claim contract to access them. Interestingly, the ERA airdrop will still take place, set to happen on October 15, 2025.
Frequently Asked Questions (FAQs)
The July $1.6M exploit became the primary catalyst for the downfall of the Kinto. Later, rising debts and failure to secure funding resulted in its shutdown.
Hacker drained 577 ETH from Kinto’s liquidity pool, affecting its token price.
Users can withdraw their funds until September 30, but after that they need to use a claim contract to access them.
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Source: https://coingape.com/trending/why-did-kinto-token-price-crash-85-in-24-hours/
