Kinto to Cease Operations After Hack… Token Plunges 76%

Ethereum (ETH) Layer-2 network Kinto is shutting down due to a hack that occurred last July.

On the 7th (local time), crypto-focused outlet The Block reported that Kinto will cease operations on September 30.

The reason for Kinto's shutdown is a large-scale hacking. On July 10, Kinto's smart contract was attacked and about 57.7 Ether were stolen. The attacker minted 110,000 forged Kinto tokens, sold them on the market, and an incident occurred in which Kinto tokens plunged about 95%.

Afterward, Kinto launched a recovery program called 'Phoenix' and raised $1,000,000 but failed.

Ramon Recuero, Kinto's founder, said, "Since July, the team has been operating effectively unpaid," and "With the final funding falling through, we decided to cease operations."

As of 6:52 a.m. that day, Kinto was trading at $0.5632, down 76.99% from the previous day, according to CoinMarketCap.