The Kinto token, the Kinto network governance token, fell by more than 80% after its team announced that its Blockchain in layer 2 of Ethereum stops at the end of September, after months of reverse.
Kinto raised $ 1 million in debt to restore exchanges on its “modular exchange” after hacking on an industry scale in July has drained around 577 ether (ETH) worth around 1.6 million dollars in the protocol.
However, the worsening of market conditions “killed additional fundraising”, forcing the crypto project to close, Kinto posted on Medium on Sunday.
“Every day we continue, funds decrease more. We have worked without wages since July, and after the end of the last financing path, we have a responsible choice: to close properly and protect users / lenders as best as possible. ”
The hacking of $ 1.6 million results from a safety vulnerability in the standard of Proxy ERC -1967 – a current OpenZeppelin code base which allows intelligent contracts to be upgraded without modifying their address. Several other projects have also been assigned.
While Kinto blamed the failure of hacking and increasing financial pressures, a spectator underlined the excessively high annual performance offers from Kinto on the stablescoins, even sometimes after hacking when they had trouble generating income.
One of the founders of Kinto, Ramon Recuero, noted in April that K Staking offered an annual return of 130% in USDC (USDC) – one of the highest in the entire DEFI space. Other decentralized financial platforms with high yields had rocky past.
The project, which was built on Arbitrum and exploits the main Ethereum maintenance for the colonies, also offered the trading of token actions like Apple, Microsoft and Nvidia.
Its modular exchange has tried to combine the effectiveness of centralized exchanges with the safety characteristics offered by decentralized exchanges.
Kinto reveals the recovery plan
Kinto said that all remaining assets – including $ 800,000 in UNISWAP liquidity – will be distributed to “Phoenix” lenders who helped Kinto relaunch. They should recover 76% of their loan director.
Kinto and Recuero also set up a “goodwill subsidy” for the victims of hacking, each receiving $ 1,100 per assigned address. Recuero said it would contribute more than $ 130,000 to its own funds to relieve.
Kinto said that he would continue to recover the lost assets and that if the recovery exceeded the victim’s amounts, this would share this with the community via Snapshot, a voting platform generally used by decentralized autonomous organizations.
The Kinto team urged users to remove assets by September 30. After that, they should claim assets thanks to a perpetual complaint contract that Kinto plans to create.
Kinto is the second project of Crypto Failive to Recouero
Kinto marks the second Crypto company of Recuero to close, following Babylon Finance, who closed in November 2022 after being a hacking of $ 3.4 million earlier that year.
Recuero also said at that time that his team was not “able to return to the negative momentum” caused by the hack, forcing Babylon to close only after its public launch.
In relation: Ethereum L2 Starknet suffers from the 2nd main breakdown in 2 months
K Token falls almost 80%
Kinto (K) landed from 81.4% to $ 0.46 since the team announced the news, its market capitalization oscillating barely above the million dollars bar, according to Coingecko data.
Fall comes almost a month after reaching a top of $ 14.5 million on August 14. The Kinto token was launched only four months ago in April.
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