Kadena, a layer 1 blockchain, announced it is ceasing all business activities due to unfavorable market conditions. The KDA token plunged 60%, but the decentralized network will continue running independently.
The Kadena organization has announced the immediate cessation of all business operations and active maintenance of its blockchain.
The move comes amid worsening market conditions and declining adoption, signaling a major setback for the layer 1 blockchain once hailed as the "blockchain for business."
The Kadena team expressed deep gratitude to their community and partners but cited unsustainable finances as the critical reason for shutting down.
Despite the company’s exit, the Kadena blockchain itself is not owned or controlled by the organization.
It operates as a fully decentralized, proof-of-work smart contract network maintained independently by miners.
The Kadena team assured users that a new software update will be provided soon to guarantee uninterrupted blockchain operation without their involvement, urging node operators to upgrade promptly.
Market Collapse and Token Fallout
Following the closure announcement, the KDA token's price crashed more than 60% within 24 hours, plummeting to around $0.089 from its peak of $27.64 in 2021—a staggering 99% loss in value.
The sudden drop wiped nearly $90 million in market capitalization as traders rushed to exit positions.
Kadena had positioned itself strongly with funding, grant programs, and backing by former JPMorgan executives, but ultimately fell victim to unfavorable market forces.
Official communications emphasized that while the organization is winding down, the KDA token and protocol will continue independently.
Over 566 million KDA remain reserved for mining rewards until 2139, and lockup emissions will continue until 2029.
The developers remain open to community discussions on transitioning governance and maintenance to decentralized stakeholders.
Decentralization and Continuity
The company clarified that Kadena's blockchain network is autonomous from its operational business.
Independent miners run the proof-of-work consensus while smart contracts and protocols are governed by their respective maintainers.
A small team will remain temporarily to manage the transition and wind-down.
The Kadena organization’s message emphasized their readiness to assist the community in assuming full governance and support.
They pledged ongoing updates as the transition unfolds and expressed gratitude to all who participated in the blockchain’s development journey
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Kadena Blockchain Shuts Down Amid Market Collapse
Kadena blockchain shuts down business operations due to poor market conditions. KDA token crashes over 60%, while the network will operate independently.