Ethereum Layer-2 Blockchain Kinto Shut Down Due to Major Hack

Kinto, an Ethereum layer-2 blockchain project designed to enhance scalability and efficiency, will be shutting down on September 30th. This decision follows a significant $1.6 million hack in July, leading to a cascade of consequences. Despite the community’s efforts, securing sufficient funding for recovery proved challenging due to market sentiment, investor confidence issues, and intense competition within the Layer-2 space. The Kinto shutdown is a stark reminder of the inherent vulnerabilities associated with decentralized finance (DeFi) and the importance of robust security measures in blockchain projects.