Kadena Shutdown Sparks 75% KDA Crash Amid Developer Exit
On October 21, 2025, Kadena (KDA) abruptly ceased operations after its development team abandoned the project, citing unfavourable market conditions. The move triggered a 75% KDA crash, sending the token from $0.225 to $0.056 within hours and prompting major exchanges to suspend or delist trading pairs.
Launched in 2016 by ex-JPMorgan engineers Stuart Popejoy and Will Martino, Kadena’s Chainweb proof-of-work blockchain and Pact smart contract language aimed to offer Bitcoin-level security. The ecosystem peaked in 2021 with KDA at $27.64 and a $3 billion market cap, drawing comparisons to Solana.
However, bearish sentiment in 2022, competition from proof-of-stake networks, and disputes with DEX partner Kaddex— which cut node access and migrated to Ethereum—stalled growth. Kadena’s $100 million grant program in 2022 and $50 million fund in 2025 saw minimal use, depleting resources.
Amid allegations of insider shorting and potential class-action suits against the founders, the KDA crash spiked trading volume by 1,200%. Independent miners and community developers, backed by early partner Flux, plan to keep Chainweb running.
Yet reputational damage, ongoing supply pressure from 566 million remaining KDA rewards, and the lack of leadership and funding cast doubt on Kadena’s long-term viability.
Bearish
The abrupt Kadena shutdown and developer abandonment have severely undermined market confidence, leading to a sharp 75% KDA crash and exchange delistings. In the short term, traders face heightened volatility and liquidity constraints as trading volume surges. Long-term recovery is doubtful without leadership, funding, or significant ecosystem adoption, and continued mining supply will exert downward pressure. Historical precedents suggest that networks losing core developers and financial support struggle to regain traction, indicating a sustained bearish outlook for KDA.