On July 10, #Kinto suddenly plummeted, which can be considered a black swan in this bull market.
While the entire market was optimistic, the K token crashed from $8 to $0.7, instantly dropping over 90%, with a market cap of less than $2 million. The community erupted in outrage, with widespread doubts about a "Rug Pull".
The project team quickly responded, stating that the contract on the Arbitrum chain was hacked, and it was not a vulnerability in the Kinto mainnet. It turns out the hacker exploited a backdoor in the contract to mint K tokens infinitely, rapidly crashing the market and draining funds on Uniswap and Morpho. The team urgently shut down the contract and initiated an audit, while also promising to snapshot user assets, restart liquidity, and even plan to relist K tokens on CEX at the original price.
However, the community clearly remained skeptical, as just 10 days prior, K had completed a round of early investor unlocks, leading many to suspect there were hidden issues behind the crash. This incident once again sounded the alarm: even in a bull market, one can step on a landmine; do not just focus on the price increase; the security of contracts and the rhythm of token unlocks are worth paying more attention to.
DYOR, never goes out of style.
