Kinto Token Sinks to All-Time Low on Exploit Suspicions
The digital currency market has been shaken by the sudden crash of Kinto's native token (K), which plummeted nearly 92% within a day. This dramatic collapse followed a confirmed off-chain exploit related to Kinto's Arbitrum mint contract.
Details of the incident reveal that the exploit allowed malicious actors to mint nearly 7 million tokens, far exceeding the intended supply limit. This unauthorized minting severely diluted the token's value and led to the crash.
The incident is tied to vulnerabilities in the Arbitrum mint contract, a critical component of Kinto's decentralized exchange platform. Additionally, there was a related security concern involving a $9 million USDC amount that remained unfrozen for approximately two hours after the attack, raising questions about the protocol's security and incident response.
This exploit has sparked investigations by both authorities and blockchain security experts to understand the breach and prevent similar events in the future. The ongoing investigations involve security firms Seal 911, Hypernative, Venn, and Zeroshadow.
Regarding the token unlock event, while the details are not yet clear, the significant minting of tokens beyond the maximum supply suggests that the exploit may have involved or impacted scheduled token unlock mechanisms or minting permissions, allowing the excess tokens to be generated off-chain and then introduced into circulation.
As a result of this incident, the market capitalization of Kinto's token has evaporated to $925,886. Following news of the alleged breach, Kinto was labeled a "scam" by some users and influencers. The trading volume of Kinto's token was nearly $2.8 million at the time of writing.
This incident underscores critical vulnerabilities in token minting and unlocking mechanisms, particularly for projects operating on Layer 2 solutions like Arbitrum. The Q2 2025 CertiK report states that crypto projects lost at least $620 million, with code vulnerabilities and wallet exploits identified as major security issues.
Investors who bought in around $10 are now facing immense sell pressure, contributing to the token's downward spiral. The price of Kinto's token hit a new all-time low of $0.5114 on July 10, shedding 91.9% of its value. In the last week, Kinto's token has decreased by 85.8%.
This news serves as a reminder of the importance of robust security measures in the rapidly evolving world of cryptocurrency. As the market continues to grow, so too do the opportunities for exploitation. It is essential for projects and investors alike to prioritize security to protect their assets and the integrity of the digital currency market.
- The sudden crash of Kinto's native token was due to an unauthorized minting of nearly 7 million tokens, a security breach that took advantage of vulnerabilities in Kinto's Arbitrum mint contract.
- The digital currency market is under investigation following the exploit that led to the collapse of Kinto's token, with investigations being led by security firms Seal 911, Hypernative, Venn, and Zeroshadow.
- The ongoing investigations highlight the importance of robust security measures in the cryptocurrency market, especially for projects operating on Layer 2 solutions like Arbitrum, as the Q2 2025 CertiK report states that crypto projects have lost at least $620 million due to code vulnerabilities and wallet exploits.
