In a shocking announcement yesterday, the Kadena team revealed that the organization can no longer continue its business operations and will cease all activities immediately. Despite the company’s closure, the Kadena blockchain will remain operational, maintained by independent miners and developers under its decentralized proof-of-work structure.
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The news shocked the crypto community, triggering a massive sell-off in KDA, Kadena’s native token, which fell over 55% within hours of the announcement. The crash effectively erased almost all of Kadena’s price gains accumulated over the past five years, marking one of the most dramatic declines among major blockchain projects in recent memory.
in his official statementThe Kadena team cited current market conditions and the inability to maintain operations as key reasons for the closure. The organization will hire a small team to assist with the transition and ensure operational continuity while encouraging the community to take on governance and maintenance of the network.
Kadena’s future now in the hands of its community
Kadena’s team released more details in X, which describes the next steps to maintain the network. The organization emphasized its commitment to ensuring operational continuity during this transition. They will soon release a new binary designed to allow the blockchain to work autonomously, without any central supervision. Node operators will be encouraged to upgrade quickly to ensure uninterrupted operation.
Despite the company’s closure, the Kadena blockchain and its native KDA token will continue to exist. More than 566 million KDA remain allocated to mining rewards, which the project will gradually distribute until 2139. Additionally, the project will put around 83.7 million currently locked tokens into circulation until November 2029. These issuances, combined with continued mining activity, suggest that the technical foundation of the blockchain will remain intact. However, the loss of the core development team introduces significant uncertainty about its future evolution.
The Kadena team also invited the broader community to take an active role in governance and maintenance. Signaling a possible transition towards a more decentralized and community-led model. Time will tell if the ecosystem can be sustained without centralized leadership.
This event underscores the fragility of even well-established blockchain projects when faced with prolonged market headwinds and operational stresses. While the network will technically survive, its long-term health now depends on whether miners, developers, and users come together to preserve Kadena’s infrastructure and vision, or allow it to fade into the background of blockchain history.
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KDA price plummets to multi-year lows
The weekly chart of Kadena (KDA) shows a devastating picture following the project’s announcement that it would cease commercial operations. KDA plunged more than 60% in a single week, falling to around $0.08, marking its lowest level since mid-2020. This crash effectively erased nearly all of the token’s five-year gains, and the intense red candle underlines the scale of panic selling across the market.
From a technical perspective, the break below the long-term support zone near $0.20 indicates a complete loss of investor confidence. The increase in trading volume that accompanied the crash highlights the intense liquidation activity and capitulation of both long-term holders and speculative traders. The 50-day and 200-day moving averages remain well above current levels, confirming a prolonged downtrend with no immediate signs of recovery.
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Unless strong community-driven efforts emerge to stabilize the network and restore trust, KDA risks further downward pressure. The next potential support level is around $0.05, a psychological floor where bottom fishing could occur.
The structure of the Kadena market has completely collapsed. With trust shaken and the organization dissolved, the price of KDA will now depend entirely on whether miners and community participants can keep the network (and its narrative) alive.
Featured image from ChatGPT, chart from TradingView.com
