The Kinto (K) token experienced a sharp decline, losing almost 92% of its value within 24 hours. This occurred after an exploit linked to its deployment on Arbitrum was confirmed and a large volume of investor tokens was unlocked.
Exploit Confirmation and Price Drop
Kinto X confirmed the incident, stating: 'an exploit has happened OFF the Kinto network impacting the $K token deployment in Arbitrum.' The token's price hit a new all-time low of $0.5114, triggering a wave of panic and accusations of mismanagement from the community.
Impact of Token Unlock
On July 1, 73.6% or 1.86 million tokens were unlocked, doubling the circulating supply. Investors likely bought in around $10, creating immense sell pressure. Analyst HumzyTrades noted that at least $15 million worth of tokens were unlocked at the end of June, accusing early investors of unethical dumping actions.
Community Reaction and Aftermath
The news of the alleged breach intensified discontent among users. Many began accusing the Kinto team of mismanagement and labeled the situation as a scam. The security landscape in the crypto sector remains precarious, with a CertiK report from July 5 showing that crypto projects lost at least $620 million in Q2 2025 due to code vulnerabilities and wallet attacks.
The Kinto situation illustrates the vulnerabilities of the crypto market and the need for stricter security oversight to protect investors.
