Kinto (K) announced it would be shut down after failing to recover from a series of hits, including $1 million in debt burden and the prolonged impact of the July exploit.
The news sparked a dramatic sale, with K-tokens plummeting by almost 85% in the last 24 hours.
Kint shuts down: everything the user needs to know
sponsor
The Defi Project revealed its decision in a statement posted on X (Twitter) and admitted that it had exhausted all its measures to continue. Proving that every effort has failed, it is now blowing in orderly winds.
The project emphasized that users can withdraw assets until September 30th. Meanwhile, Phoenix lenders will collect about 76% of their principals.
Morpho victims, the hardest hit by the July exploit, can claim up to $1,100 each from the founder-established Goodwill Fund.
“It’s time to embrace reality. I sought this venture to make the most of my abilities, but didn’t achieve any successful results. The CPIMP exploit was Black Swan, but I donated over $130,000 to provide relief to the affected users.”
The project highlighted that the wallet, layer 2 infrastructure and core systems will not be hacked, but the July CPIMP proxy exploit will emit 577 ETH. This reportedly forced Kint to raise his debts in desperate attempts to recover.
sponsor
As a result of this incident, K prices fell more than 90% on July 10th. Since the announcement of the closure, the Kinto Ecosystem’s power tokens have fallen by more than 85%.
Coupled with new debt, the market situation ultimately killed the possibility of further funding.
“The team has been unpaid since July. It’s time to face reality and close responsibly,” the project said.
What users need during the difficulties of withdrawal
sponsor
The sudden closure sparked backlash from some users.
However, Kint has challenged the idea that the shutdown is a lag pull, claiming that neither the team nor the investor has unlocked a single token.
As other users are looking for room to withdraw their assets, Kint encouraged users to submit a request for assistance with customer support.
“If it helps Ned withdraw, we’ll create a help ticket on Discord,” Kinto pointed out.
sponsor
Security researchers reportedly still track the stolen 577 ETH, and Kint vows that recovery will go to the victim first.
It is also expected that the withdrawal and repayment of unpaid will be processed in early October.
Against this background, Kint began consolidating about $800,000 of his remaining assets into the foundation’s safe. All funds reportedly are allocated to repay creditors and victims.
sponsor
Despite being blown by the wind, the project also confirmed that the pending era’s crypto airdrops will be distributed in October.
Kint claims to be responsible for shutting down, but the collapse is a harsh reminder of the vulnerability of early-stage defi projects.
