- The Kadena team announced a full shutdown of business operations.
- KDA token plunged nearly 60% within hours of the news.
- The blockchain will continue running through independent miners.
Kadena — KDA , recently stunned the crypto world on Tuesday after announcing the end of all business operations. The organization revealed that unfavorable market conditions forced the decision. The announcement triggered a massive sell-off as traders scrambled to exit positions. KDA’s price plummeted from $0.207 to $0.078 within hours before finding slight relief around $0.087.
Kadena’s Sudden Exit Shakes the Market
The 58% plunge marked one of KDA’s worst trading days since launch. The token now trades only 25% above its all-time low, a staggering drop from its 2021 peak above $27. For many early investors, the fall represents the collapse of once-lofty ambitions.The Kadena team confirmed that every employee has been informed.
A small internal unit will oversee the transition process while the rest of the organization winds down. Founded in 2019 by Stuart Popejoy and William Martino—both veterans from JPMorgan and the U.S. SEC— Kadena blockchain aimed to bridge traditional finance with blockchain. The team once envisioned a proof-of-work network designed to attract institutions and major developers.
Despite raising $15 million through three funding rounds, the project struggled to maintain momentum. Even after last year’s hiring spree announcement, hopes of revival faded as the market downturn deepened. Annelise Osborne had previously shared plans to expand operations, but those ambitions appear finished.
Blockchain Continues Without Kadena’s Backing
Although the company is shutting down, the Kadena blockchain remains alive. Independent miners will continue maintaining the network through decentralized nodes. The organization confirmed that a new binary will soon be released to keep operations stable. Node operators must upgrade to prevent interruptions.
Over 566 million KDA tokens remain locked for mining rewards scheduled through 2139. Another 83 million tokens will unlock by November 2029. These distributions follow the original protocol’s emission design, ensuring continuity for miners and node operators even without corporate support.
The remaining team members promised to engage with the community on future governance. They plan to publish updates as the transition unfolds. While the network endures, the loss of central leadership leaves many uncertain about long-term development and ecosystem growth.
Market reaction was swift and intense. Trading volume spiked over 1,200% to $105.3 million within a day. Investors rushed to reposition their holdings, fueling further volatility. Analysts compared the situation to an “exit scam,” while community members accused the team of poor communication.
Ahmed Raza, a vocal investor, criticized the shutdown as a betrayal of the ecosystem. Many echoed his frustration, saying the team should have offered transparency before taking such drastic action. The organization’s vague explanation—simply citing “market conditions”—only deepened doubts among supporters.
