The native token behind the Kadena layer 1 blockchain fell 60% in 90 minutes on Tuesday after the founding team announced it would cease operations and halt all network maintenance due to “market conditions.”
In a letter to X on Tuesday, Cadena He said “It is no longer able to continue business operations and will cease all business activities and active maintenance of the Kadena blockchain immediately.”
“We are extremely grateful to everyone who has shared this journey with us. We regret that due to market conditions, we are unable to continue to promote and support the adoption of this unique decentralized offering,” the statement read.
The first layer branded “blockchain for business” was founded in 2016 by Stuart Pobjoy and Will Martino.
Pobjoy was previously the leader of JPMorgan’s former Blockchain Center of Excellence, while former Cadena CEO Martino served as technical lead for the SEC’s Cryptocurrency Steering Committee before focusing his efforts on Cadena full-time.
The shutdown shows how difficult it is to build a sustainable user base and turn a profit amidst fierce competition from larger chains like Ethereum and Solana.
Kadena Token (KDA) once soared to nearly $4 billion in November 2021 but today stands at $30.9 million, CoinGecko Data He appears.
Kadena and KDA will remain online
Cadena said it would maintain a small team to handle the liquidation period. However, independent validators will still be able to process transactions and mine blocks on Kadena’s proof-of-work blockchain.
“The Kadena blockchain network is not owned or operated by the company. As a fully decentralized proof-of-work smart contract blockchain, the network is operated by independent miners, while the onchain smart contracts and protocols are independently managed by their maintainers.”
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Cadena said it would soon provide “a new binary that ensures uninterrupted operation without our involvement, and we will encourage all node operators to upgrade as soon as possible.”
Kadena still needs a plan for unlocked KDA tokens
The KDA token will also continue, and the Kadena team said it will consult with the community on how to distribute the 83.7 million KDA tokens scheduled for release in November 2029.
Cadena noted that there are another 566 million KDA tokens that will be distributed as mining rewards until 2139.
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