Kinto Network, operating on the Ethereum platform, has announced the end of its operations after facing severe financial issues and a cyber attack. The K token has plummeted by over 80%.
Reasons for Kinto Network Closure
Kinto's development faced significant challenges after a cyber attack in July, resulting in the loss of 577 Ether. The project team reported the inability to secure additional funding amid deteriorating market conditions and decided to shut down the project.
> "Every day that we go on, the funds dwindle further. We’ve operated without salaries since July, and after the last financing path fell through, we have one responsible choice left: shut down cleanly and protect users/lenders as best as possible." CITE_W_A
Current Status of Kinto Token
The Kinto token has tanked by 81.4% to $0.46 since the announcement of its shutdown. Its market cap now barely hovers above $1 million. This decline occurred almost a month after reaching a market cap record of $14.5 million on August 14. The project existed for just four months.
Plans for Compensating Affected Users
Kinto has announced plans to recover remaining assets, including $800,000 in Uniswap liquidity. Victims of the hack will receive a goodwill grant of $1,100 per affected address. Furthermore, co-founder Ramon Recuero stated he would contribute over $130,000 of his own funds to assist affected users. Users are urged to withdraw their assets by September 30.
The closure of Kinto Network serves as another example of the high risks involved in the cryptocurrency sphere for users and investors. The project, which promised high yields, failed to cope with the aftermath of a cyber attack and financial pressures.
