Kadena's Closure Caused KDA Price to Drop by 60%

Kadena announced that it has halted all operations due to unfavorable market conditions. Following this development, the KDA price dropped by more than 60%, falling to $0.088. This situation has drawn the attention of investors, highlighting that Kadena has a market capitalization of $100 million and was founded in 2019 by former JPMorgan executives.

Kadena aimed to bridge the corporate world with blockchain technology. However, the company stated in its announcement that it was "no longer in a position to continue its business operations" and announced the cessation of all commercial operations and active network maintenance. The team will continue to operate for a limited time with a small staff solely to manage the transition process.

Kadena's official statement emphasized that the network has a completely decentralized structure. Accordingly, even when the Kadena company shuts down, independent miners will continue to operate the network. Kadena plans to release a new software update to ensure the sustainability of the network and has requested all node operators to upgrade to this version.

The Kadena team announced that 566 million KDA tokens will be distributed as mining rewards until the year 2139. Furthermore, it was reported that 83.7 million KDA tokens will be unlocked by November 2029. This signifies the beginning of a new era where the Kadena network will be fully managed by the community.

Kadena's decision to shut down has raised concerns about the future of many blockchain projects that have been struggling to survive in a prolonged bear market. In light of these developments, it is crucial for investors to closely monitor market conditions and Kadena's future. This sharp drop in Kadena's KDA price presents new risks and opportunities for investors.