The native token, KDA, will decline by more than 60% as the Kadena organization will cease all business operations and cease maintaining the blockchain.
Market uncertainty has caused a surge in trading volumes, and the token is currently plummeting towards all-time lows. The future of the network now rests with miners and the broader community.
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Kadena Organization suspends operations due to market pressure
The Kadena group made the announcement in a post on X (formerly Twitter). This sudden move marks a turning point for proof-of-work blockchains, which were once positioned as a scalable, high-throughput alternative.
“Unfortunately, the Kadena organization is no longer able to continue its business operations and we are announcing that we will cease all business activities and active maintenance of the Kadena blockchain, effective immediately,” the post reads.
The research team cited “market conditions” as the main reason for the closure. Additionally, the Kadena organization confirmed that all employees have been notified of the news.
In this post, we emphasized that the blockchain itself continues to operate as a fully decentralized network powered by independent miners. A small in-house team will oversee the transition period and release new binaries to ensure network continuity without corporate oversight.
Node operators and protocol contributors will need to coordinate upgrades to maintain uninterrupted operations as the team is phased out.
“For continuity of operations, we will soon provide new binaries that ensure uninterrupted operation without involvement and encourage all node operators to upgrade as soon as possible,” the Kadena agency said.
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Additionally, KDA tokens will continue to reward miners for over a century, which is consistent with the protocol’s emissions plan. Over 566 million KDA remains in mining rewards, to be distributed until 2139, with over 83 million KDA expected to be unlocked by November 2029.
“We stand ready to work with the Kadena community to discuss how we can support the community’s transition to governance and sustainability. We will post updates on this as they become available,” the group added.
Investors react to Kadena (KDA) closure news, price falls
Despite the group’s assurances, the market reacted negatively to the announcement and became bearish on KDA. Immediately after the news, the price fell 62.3% from $0.207 to $0.078, according to data from BeInCrypto Markets.
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At the time of writing, the altcoin price had fallen 58.8% in the past 24 hours to settle at $0.087. The price is currently just 25% off its all-time low (ATL).
Additionally, trading activity surged during the decline, with 24-hour volume reaching $105.3 million, an increase of 1,277%. This spike in volume indicates investors are rushing to change positions and market participation is increasing.
Notably, the closure of the Kadena organization has also prompted significant backlash from the local community. One analyst even described the situation as an “exit scam,” suggesting holders may consider selling.
“Kadena has reportedly been shut down and a project backed by Binance Institute has hit a dead end. If you own it, please consider exiting immediately before the losses become too much,” Huang wrote.
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Another key opinion leader (KOL) criticized the announcement as inappropriate and a betrayal of the community. Commentators argued that the sudden closure due to “market conditions” lacked transparency and adequate transition planning.
“They left investors, builders and believers in the dark. Kadena had all the potential, technology and community, but what it lacked was heart. When the going got tough, the team gave up. This was not the end of the project, it was a betrayal of the community. Kadena is not dead. It was abandoned,” commented Ahmed Raza.
The closure of the Kadena institution therefore marks a turning point for the project. While the network may continue through decentralization, trust is gone and the community now faces uncertainty about its leadership and long-term viability.
This situation raises big questions for other projects. Can decentralized blockchains survive in the long term without a central team? The Kadena community’s response in the coming weeks could set a precedent for continued decentralization after business shutdowns.
