Kinto Token Drop 80% Because Ethereum Layer-2 Plan Dey Shutdown
Kinto token don down pass 80% after the team announce say dem go shutdown dia Ethereum layer-2 network for Sept 30. This move follow one exploit for July wey take advantage of OpenZeppelin ERC-1967 Proxy vulnerability to mint 110,000 fake Kinto tokens for Arbitrum and commot 577 ETH (~$1.9 M) from Uniswap and Morpho pools. Under the Phoenix Program, Kinto raise $1M debt to stable after the hack, but plenty debts, fail to raise fund and unsustainable yield make dem shutdown. The leftover asset of about $800,000 go pay back Phoenix lenders (~76% recovery), meanwhile Morpho hack victims fit claim up to $1,100 each from $55,000 goodwill fund wey co-founder Ramon Recuero back with $130,000 promise. Users must withdraw dia assets before Sept 30; for October, Ethereum mainnet claim contract and ERA airdrop (Oct 15) go allow balance recovery, any extra go return through Snapshot governance. Kinto token now dey trade for $0.38, na the second failed DeFi project for co-founder Recuero after Babylon Finance exploit for 2022.
Bearish
Di tori say Kinto token go shutdown soon plus di $1.9M hack wey happen before don scatter market confidence well well, e cause di price drop pass 80%. For short term, trading go still full of sell-off as holders dey rush take their asset comot before di September 30 deadline and try see if recovery fit happen. Di planned reimbursements and airdrop fit help small, but liquidity low and money wey dem still dey owe go stop big rebound. For long term, Kinto failure show say security palava still dey for Ethereum layer-2 projects and e fit make new investors fear, e mean bearish pressure go continue unless dem do strong audit and governance.