The blockchain industry faced another major shake-up as Kadena, a Layer-1 network once praised for its scalability and enterprise potential, announced an abrupt shutdown of all business operations. The project’s founding team cited “market conditions” as the main reason for ceasing maintenance, leading to a massive 60% plunge in Kadena’s native token, KDA, within hours. Despite the team’s departure, the Kadena blockchain itself will remain active, maintained by independent miners and validators.
- Kadena’s founding team announced an immediate shutdown due to poor market conditions.
- The KDA token dropped over 60% in a single day, now trading below $0.10.
- The blockchain remains operational through independent miners and validators.
- Over 83 million KDA tokens are still locked until 2029, with mining rewards continuing until 2139.
- Community-led efforts may determine whether the network survives long term.
Kadena, founded in 2016 by ex-JPMorgan blockchain lead Stuart Popejoy and former SEC tech lead Will Martino, positioned itself as a “blockchain for business” offering scalable and secure smart contracts through its Chainweb architecture. The network’s innovative multi-chain design once attracted significant attention, driving its token to a $4 billion valuation in November 2021. However, years of limited adoption, declining activity, and an extended crypto bear market ultimately took their toll.
In an official statement posted on October 21, Kadena confirmed it would cease all business activity and maintenance immediately, expressing gratitude to its users and partners. “We regret that due to market conditions we are unable to continue promoting this decentralized offering,” the team said. Despite the closure, Kadena clarified that the blockchain remains decentralized and will continue functioning through its proof-of-work network. Independent miners can still validate transactions, and smart contracts will operate as normal.
The team pledged to release a new binary allowing uninterrupted network operation without its involvement and encouraged node operators to upgrade. They also invited the community to discuss governance transitions and potential future leadership structures. This move aims to preserve Kadena’s decentralized integrity while minimizing disruption to users.
At the time of writing, KDA is trading around $0.085—down over 99% from its all-time high of $28.25 during the 2021 bull run. Of the total 1 billion KDA tokens, around 335 million are currently in circulation. Approximately 83.7 million KDA remain locked until 2029, and 566 million tokens are reserved as mining rewards distributed until 2139. While the blockchain remains live, economic incentives for miners and developers could decline without active ecosystem support.
Kadena’s downfall highlights the harsh realities of the crypto industry: strong technology alone isn’t enough without sustained adoption and financial stability. For investors and blockchain builders alike, it serves as a reminder that resilience, user traction, and community-driven growth are key to survival in today’s volatile crypto markets.
