The native token of Kinto, an Ethereum layer 2 project, has crashed 90% in market price in a sudden choke. While the reason is not being clear, investors are alleging the team behind Kinto project for rugpull and dumping their tokens in markets.
Kinto (K) was trading near $7.48, which fell in cents to $0.5—as per CoinMarketCap data. Its 24 hour trading volume has spiked 200% in the past 24 hours.
This dramatic drop in Kinto price is likely triggered by an unresolved operational incident and severe liquidity risks, which the team reported earlier.
The decline has raised concerns among investors with many pointing to inadequate risk management and transparency from the team. This currently seems a primary reason in eroding trust in the project’s operational stability.
Investors on X Alleges Team for a Rugpull
The crash, detailed in a viral X post by crypto analyst HumzyTrades, reveals that the project recently unlocked 2.25 million Kinto (K) tokens. These were allegedly dumped by insiders as markets turned green.
The analyst points towards the project’s ‘cocky leadership’ and a concentrated 10% allocation to the team and advisors as red flags.
This is a developing story.
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