A recent incident involving Kinto’s $K token has triggered significant market fluctuations as its value fell by 87% following the detection of an exploit on the Arbitrum network.
Exploit Discovery
Kinto first addressed the issue at 10:50 AM GMT, stating that they were investigating the situation with third parties. By 12:33 PM, the platform confirmed that an exploit took place off the Kinto network, affecting the $K token deployment on Arbitrum, with other bridged funds remaining safe.
Market Impact
Following the confirmation of the exploit, the token price fell by 45% within just one hour. Analysts pointed out that the attacker minted nearly 7 million tokens, exceeding the current circulating supply of under 2 million, causing panic selling and negative sentiment among traders.
Investigation and Recovery Measures
Kinto is collaborating with various cybersecurity and blockchain forensics teams to investigate the incident. They promised to share a full report with the public and relevant authorities. As of now, Kinto asserts that its mainnet, wallets, and bridge vaults were unaffected by the breach.
The $K Kinto token incident raises questions about security and smart contract design, generating concern among investors. The platform continues to work on recovery and investigation.
