The Kadena organization has ended all business operations and will stop maintaining its blockchain, causing the native token KDA to fall by more than 60%.
The token is now plunging towards its all-time low, as market uncertainty drives a surge in trading volume. The network’s future now depends on miners and the broader community.
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Kadena Organization Halts Operations Amid Market Pressure
The Kadena organization made the announcement via a post on X (formerly Twitter). This sudden move marks a turning point for the proof-of-work blockchain, once positioned as a scalable, high-throughput alternative.
The team cited “market conditions” as the key reason for the shutdown. Furthermore, the Kadena organization confirmed that all employees have been notified of the news.
The post emphasized that the blockchain itself will continue operating as a fully decentralized network powered by independent miners. A small internal team will oversee the transition period and release a new binary to ensure network continuity without corporate oversight.
Node operators and protocol contributors must coordinate any upgrades to preserve uninterrupted operation as the team phases out.
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In addition, the KDA token will continue rewarding miners for more than a century, which aligns with the protocol’s emissions plan. Over 566 million KDA are left for mining rewards, which will be distributed until 2139, and more than 83 million KDA will be unlocked by November 2029.
Kadena (KDA) Price Falls as Investors React to Shutdown News
Despite the organization’s assurances, the market reacted negatively to the announcement, turning bearish on KDA. BeInCrypto Markets data showed that the price plunged 62.3% from $0.207 to $0.078 shortly after the news.
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At the time of writing, the altcoin’s price had settled at $0.087, down 58.8% over the past 24 hours. The price is now just 25% away from hitting its all-time low (ATL).
Kadena (KDA) Price Performance. Source: BeInCrypto MarketsMoreover, trading activity surged during the sell-off, with 24-hour volume climbing to $105.3 million, marking a 1,277% increase. This spike in volume signals heightened market participation as investors rushed to reposition.
Notably, the Kadena organization’s shutdown has also attracted substantial backlash from the community. One analyst even described the situation as an “exit scam,” suggesting that holders might consider selling.
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Another key opinion leader (KOL) called the announcement poorly handled and a betrayal of the community. The commentator argued that the abrupt shutdown, attributed to “market conditions,” lacked transparency and a proper transition plan.
Thus, the Kadena organization’s shutdown marks a turning point for the project. While the network may continue through decentralization, confidence has eroded, and the community now faces uncertainty over its leadership and long-term viability.
This situation raises larger questions for other projects. Can a decentralized blockchain survive long-term without a central team? The Kadena community’s response in the coming weeks may set a precedent for decentralized continuity following business shutdowns.
Source: https://beincrypto.com/kadena-shuts-down-blockchain-community-future/
