Kadena Ceases Operations, Token Drops Over 47% Amid Market Shock

TLDR

• The company behind the Kadena blockchain has announced that it will immediately shut down all business operations.
• Following the announcement, the Kadena Token dropped by more than 47% in value within hours.
• The company stated that it can no longer continue due to unfavorable market conditions that are impacting its operations.
• The Kadena blockchain will continue to operate, as independent miners and smart contract maintainers manage it.
• The team confirmed it will provide a new binary to help node operators maintain uninterrupted network functionality.

The price of the Kadena Token plunged over 47% after the company behind it announced an immediate shutdown. The company stated it would end all business operations and maintenance related to the Kadena blockchain. Despite the shutdown, the decentralized Kadena blockchain will continue operating through independent miners.

Company Ceases Operations After Market Decline

Kadena’s organization confirmed on X that it will stop business activity and blockchain maintenance with immediate effect. The team cited harsh market conditions and said it can no longer support or promote the Kadena blockchain. “We are no longer able to continue business operations,” the company posted on X.

Despite the closure, the Kadena Token will still operate on-chain through decentralized infrastructure. Independent miners and developers maintain the proof-of-work network and its smart contracts. Kadena’s team emphasized it does not own or operate the decentralized blockchain.

The company said it would soon release a binary for node operators to ensure continued functionality without its involvement. It also urged node operators to upgrade quickly. This will ensure the Kadena blockchain remains functional independently, even after the company exits.

Kadena Token Drops Sharply in Market Reaction

The Kadena Token price fell to $0.121, down more than 47% following the announcement. According to CoinGecko, the Kadena Token is now over 99% below its 2021 peak of $27.64. The token’s decline reflects a decline in market confidence and lower trading volume.

Currently, the Kadena Token sees just $48 million in 24-hour trading activity, far behind major coins. Bitcoin’s daily trading exceeds $95 billion, while Ethereum handles over $42 billion. Kadena Token’s low volume highlights its declining market position in the cryptocurrency sector.

The sharp drop followed news that all corporate operations linked to the Kadena Token will cease. Market participants reacted swiftly to the development, triggering a steep selloff. This marks one of the steepest single-day drops in the Kadena Token’s history.

Blockchain to Remain Live Despite Closure

The Kadena blockchain will remain online, supported by global miners and protocol maintainers. The network employs a proof-of-work model similar to those used by Bitcoin and Dogecoin. Kadena’s founders claimed this setup ensures decentralization and continued operation.

In 2022, Kadena launched a $100 million grant for Web3 developers to build on its platform. However, that initiative failed to maintain momentum. The Kadena Token could not gain significant adoption or trading traction in competitive markets.

Kadena was started by two former JP Morgan blockchain developers, Stuart Popejoy and William Martino. They launched the mainnet in January 2020. The project once aimed to rival Bitcoin and offer businesses a trusted blockchain solution.

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