Kinto Token Crashes as Network Confirms Shutdown

The news caused its governance token to plunge over 80%. The project pointed to failed fundraising, unsustainable operations, and mounting losses as reasons for the ￰0￱ on Arbitrum, Kinto wanted to combine decentralized security with centralized exchange efficiency and even supported tokenized stock ￰1￱ team pledged to return remaining assets to lenders and provide grants to hack victims, but the shutdown is co-founder Ramon Recuero’s second failed ￰2￱ Network Shuts Down The governance token of the Kinto Network collapsed by more than 80% after the project announced it will shut down its Ethereum layer-2 blockchain at the end of ￰3￱ team pointed to worsening market conditions, failed fundraising efforts, and the fallout from a July hack that drained 577 ETH, worth about $1.6 million, from its ￰4￱ a Medium post , Kinto said that it was operating without salaries since July and that continuing would only erode remaining ￰5￱ left closure as the only responsible option to protect users and ￰6￱ hack exploited a vulnerability in the ERC-1967 Proxy standard, which is a widely used OpenZeppelin codebase, and impacted several projects beyond ￰7￱ the team pointed to the hack and financial pressures as the primary reasons for shutting down, some people criticized Kinto’s unsustainable yield ￰8￱ this year, co-founder Ramon Recuero said that staking K tokens generated returns of up to 130% APY in USDC, among the highest in the DeFi sector, even as the project struggled to generate ￰9￱ was built on Arbitrum with Ethereum as its settlement layer, and its modular exchange attempted to merge the efficiency of centralized platforms with the security of decentralized ￰10￱ also facilitated trading of tokenized stocks like Apple, Microsoft, and ￰11￱ the shutdown announcement, the team outlined a recovery plan that will see $800,000 in Uniswap liquidity distributed to “Phoenix” lenders who previously helped the project relaunch, allowing them to recoup around 76% of their ￰12￱ of the hack will receive a $1,100 goodwill grant per affected address, partially funded by Recuero, who pledged more than $130,000 of his own ￰13￱ team also said that if future asset recoveries exceed victim claims, the excess would be returned to the community through Snapshot ￰14￱ token’s price action over the past 24 hours () Users have been urged to withdraw assets by Sept/ 30, after which remaining claims will need to be settled through a perpetual claim ￰15￱ closure is Recuero’s second failed project, after Babylon Finance, which shut down in late 2022 after a $3.4 million ￰16￱ the announcement, Kinto’s token has plunged to $0.38.