Kadena Shuts Down as KDA Token Plummets Over 60%
Kadena, the proof-of-work public blockchain founded in 2019, announced on October 22 that it will wind down operations due to unsustainable market conditions and insufficient funding. The KDA token crashed over 60% in a single session to around $0.09, a decline of more than 99% from its late-2021 high. All commercial and technical support has ceased immediately. However, Kadena’s network can continue running as long as independent miners and validators remain active.
Approximately 566 million KDA remain to be issued as mining rewards through 2139 under the original Chainweb architecture. Kadena raised about $15 million in three funding rounds but failed to secure enough market momentum despite a 2023 expansion plan targeting Wall Street institutions. The project’s core team will stop maintenance and development, leaving network continuity to the community.
The shutdown underscores challenges faced by smaller layer-1 public blockchains competing with Ethereum and Solana. Traders should monitor upcoming KDA token unlock schedules, community governance initiatives, and miner exit rates for signs of renewed support or further volatility in the altcoin markets.
Bearish
The news is firmly bearish for the KDA token. A sudden 60% crash and the core team’s wind-down announcement undermine confidence and liquidity. In the short term, traders can expect heightened volatility as token unlocks and miner exits create selling pressure. Over the long term, without active development and institutional backing, KDA’s market depth and adoption are likely to remain limited, dampening prospects for any sustained price recovery.