Kadena's native token on the first-layer blockchain plummeted 60% within 90 minutes after its founding team announced the cessation of operations and all network maintenance due to "market conditions."
Kadena stated in a post on X on Tuesday, "We are no longer able to continue business operations and will immediately cease all business activities and proactive maintenance of the Kadena blockchain."
"We are very grateful to everyone who participated in this journey. We regret that, due to market conditions, we are unable to continue promoting and supporting the adoption of this unique decentralized product," the company said.
The brand, known for its "business blockchain," was founded in 2016 by Stuart Popejoy and Will Martino.
Popejoy was previously the head of JPMorgan's Blockchain Center of Excellence, while former CEO Martino served as the technical lead for the SEC's cryptocurrency advisory committee before focusing full-time on Kadena.
This shutdown highlights the challenges smaller blockchains face in establishing a sustainable user base and achieving profitability amid fierce competition from larger chains like Ethereum and Solana.
According to CoinGecko, the Kadena (KDA) token soared to a valuation of nearly $4 billion in November 2021, but today it stands at just $30.9 million.
Kadena stated it will retain a small team to handle affairs during the shutdown; however, it noted that independent validators will still be able to process transactions and mine blocks on Kadena's proof-of-work blockchain.
"The Kadena blockchain 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, and the on-chain smart contracts and protocols are governed independently by their maintainers," the company explained.
Kadena indicated it will soon "provide a new binary file to ensure uninterrupted operation without our involvement and will encourage all node operators to upgrade as soon as possible."
The KDA token will also continue to exist, and the Kadena team stated it will consult with the community on how to allocate the 83.7 million KDA tokens scheduled for release in November 2029.
Kadena noted that there are also 566 million KDA tokens to be distributed as mining rewards until the year 2139.
Related: Ethereum enters the final testnet phase of the Fusaka upgrade, with deployment set for December 3.
Original: “Kadena founding team announces cessation of operations due to 'market conditions,' token plummets”
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