The company behind the Kadena blockchain announced on Tuesday that it is shutting down all business operations, leading to a sharp decline in the price of its native KDA token. In a public statement on X, the Kadena organization stated: "We regret to announce that the Kadena organization is no longer able to continue business operations and will be ceasing all business activity and active maintenance of the Kadena blockchain immediately."
Traders reacted swiftly, with the KDA token price dropping more than 47% to approximately $0.121 at the time of reporting. This represents a fall of over 99% from its all-time high of $27.64 set in 2021, according to CoinGecko data.
Kadena was founded by JP Morgan veterans Stuart Popejoy and William Martino, who had previously worked on the financial giant's early blockchain initiatives. The Kadena mainnet launched in January 2020, positioning itself as a scalable blockchain platform.
Despite the shutdown, the decentralized Kadena blockchain will remain operational, as it is not owned or operated by the company. A small team will manage the transition, and the company plans to release a new software version to ensure uninterrupted network operation, urging node operators to upgrade. Additionally, 566 million KDA will continue to be distributed as mining rewards until 2139, with 83.7 million KDA unlocked by 2029. The team committed to collaborating on a shift to community management and will provide future updates.
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