Altcoins News

Story: Kinto Shuts Down After Hack as Token Plunges 81%

By James Thorp

1 / 15

Kinto Token Collapses After Shutdown Announcement. The governance token of the Kinto Network plunged 81.4% to around $0.

2 / 15

The Hack That Triggered the Downfall. Kinto was among several decentralized finance (DeFi) protocols hit by a vulnerability in the…

3 / 15

High Yields and Sustainability Questions. Even before the hack, some critics argued that Kinto’s economic model was unsustainable.

4 / 15

Built on Arbitrum With Ambitious Goals. Kinto was designed as a modular Ethereum layer-2 solution built on Arbitrum, combining the…

5 / 15

Recovery Plan and User Compensation. As part of its wind-down, Kinto has outlined a recovery and compensation plan for affected users.

6 / 15

A Pattern of Failed Ventures. Kinto is not Recuero’s first failed crypto project. In 2022, his earlier venture Babylon Finance…

7 / 15

Lessons for Ethereum Layer-2 Projects. The collapse of Kinto highlights the ongoing risks faced by Ethereum layer-2 solutions and the…

8 / 15

Conclusion. Kinto’s shutdown marks another chapter in the turbulent history of DeFi ventures struggling to…

9 / 15

Ethereum layer-2 project Kinto is closing its doors after months of financial strain and the fallout from a multimillion-dollar hack.

10 / 15

The governance token of the Kinto Network plunged 81.4% to around $0.46 following the shutdown news, according to CoinGecko data.

11 / 15

Launched in April 2025, the project lasted less than six months before deciding to close operations.

12 / 15

Kinto was among several decentralized finance (DeFi) protocols hit by a vulnerability in the ERC-1967 Proxy standard, a widely used OpenZeppelin codebase that allows smart…

13 / 15

While the team quickly raised $1 million in debt financing to restore trading on its modular exchange, the financial setback proved too severe.

14 / 15

“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…

15 / 15

Even before the hack, some critics argued that Kinto’s economic model was unsustainable. Co-founder Ramon Recuero noted in April that K staking offered 130% annual yields in…

The Currency Analytics

Want the full story?