Kadena (KDA) Shutdown: Token Plummets 77% Amid Delisting
Iris Coleman Oct 23, 2025 06:27
Kadena announces shutdown due to financial challenges, as its KDA token experiences a significant drop and exchanges begin delisting. Blockchain will continue to operate independently.
Kadena, once a beacon of innovation in the blockchain space, has announced its closure following severe financial constraints. Despite the shutdown, the Kadena blockchain will persist in operation, maintained by its decentralized network of miners, according to Cryptonews.
Kadena's Financial Struggles
The announcement of Kadena's shutdown comes amid a sharp 77% decline in its native token, KDA, over the past month. The organization's inability to sustain operations was exacerbated by adverse market conditions and a lack of adoption, leaving the team with no choice but to cease business activities.
Despite these challenges, Kadena will retain a small team to manage the winding down process. The blockchain itself will remain functional, but active maintenance and development by the company will halt.
Impact on KDA Token and Exchanges
The news of Kadena's closure caused immediate market reactions, with KDA's value plummeting to approximately $0.12—a stark contrast to its all-time high of $27.64 in 2021. Exchanges have begun delisting KDA, with OKX planning to remove KDA trading pairs by October 29, and Bybit ending perpetual contracts and related services.
Kadena's blockchain, launched in January 2020, was designed to merge Bitcoin-style security with high throughput using "braided chains." At its peak, the project's market cap approached $4 billion, backed by a vibrant community and a substantial grant program for Web3 developers. However, sustained adoption proved elusive.
Blockchain Continues Despite Company Closure
While Kadena's corporate entity is stepping back, the blockchain will continue as a proof-of-work network. The team plans to release a binary update to maintain uninterrupted operations, urging node operators to upgrade. The protocol's token economy remains active, with 566 million KDA to be distributed as mining rewards through 2139.
Kadena's founders, former JPMorgan engineers, initially set out to create a scalable blockchain for business use. However, the project's decline highlights the difficulties faced by Layer-1 blockchains competing in a crowded market dominated by Ethereum and Solana.
Industry Reactions and Future Prospects
Kadena's shutdown has sparked reactions across the crypto industry. Cardano's founder, Charles Hoskinson, extended support to the Kadena community, hinting at potential collaboration. Meanwhile, the closure has reignited discussions on the sustainability of Layer-1 blockchains.
Despite its technical ambitions, Kadena struggled to secure a robust user base. Data shows that many blockchain projects face similar challenges, with most having fewer than 2,000 daily users. Kadena's journey serves as a cautionary tale of the risks associated with technological ambition without widespread adoption.
For more detailed insights, visit the original article on Cryptonews.
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