The Kadena blockchain team has announced its inability to maintain business operations, leading to an immediate suspension of network maintenance.
The Kadena token experienced a staggering drop of 60% in just 90 minutes after the founding team revealed that they would cease all activities. In a statement made on X, they declared, “We are no longer able to continue business operations and will immediately stop all business activity and maintenance of the Kadena blockchain.”
“We are tremendously grateful to everybody who has participated in this journey with us. We regret that because of market conditions we are unable to continue to promote and support the adoption of this unique decentralized offering.”
*Translation: “We are very thankful to everyone who has joined us on this path. We lament that due to market conditions we must halt efforts to advocate for and assist in the growth of this distinctive decentralized project.”
Founded in 2016, Kadena was established by Stuart Popejoy and Will Martino, who had significant roles in previous institutions like JPMorgan and the SEC. The current developments underline the struggle smaller blockchain platforms face in sustaining a user base, particularly amidst strong competition from larger entities like Ethereum and Solana.
The Kadena token previously reached a valuation close to $4 billion in November 2021 but has sharply declined to approximately $30.9 million today, according to CoinGecko data.
Kadena remains operational: Despite the winding down, Kadena intends to keep a small team to manage this period while independent validators will still oversee transactions on the network. It’s essential to note that Kadena’s blockchain operates independently of the company, and miners manage its decentralized framework.
Kadena is also planning to release an operational binary without the company’s involvement while encouraging node operators to upgrade promptly. Furthermore, they have plans to consult with the community about a future distribution of 83.7 million KDA tokens expected to be unlocked in November 2029.
