Kadena has unexpectedly announced a halt in operations today, causing the price of KDA Coin to drop more than 50%. Despite it being a generally positive day for cryptocurrencies, Kadena delivered the worst possible news. The reasons behind this decision and the potential future implications are now a primary concern.
Why is Kadena (KDA) Falling?
The Kadena team announced they could no longer sustain their organizational operations, thus all commercial network activities would cease. In their statement, they cited market conditions as the reason for this decision. They expressed gratitude to everyone who joined them on this journey and regret that they could no longer promote the adoption of this unique decentralized service due to market conditions. The team informed their personnel of the cessation of activities while retaining a small team to manage the transition and liquidation process.
“Thank you to everyone who joined us on this journey. We regret that we can no longer continue to promote and support the adoption of this unique decentralized service due to market conditions. We have informed our staff that we will cease operations. We are keeping a small team to manage the transition and liquidation process. Please contact operations@kadenaio if you have any questions or concerns.”
Is Kadena Closing Down?
Kadena is not owned or operated by any company, meaning it can continue to function as a completely decentralized PoW network. The challenge remains, however, as to why independent miners would want to maintain a network without a company backing it. Everyone engages in mining driven by profit motives, and without a dedicated team, why would independent developers spend time on Kadena?
“The Kadena blockchain is not owned or operated by a company. As a fully decentralized proof-of-work smart contract blockchain, the network operates with independent miners while its smart contracts and protocols are managed independently by its supporters. For operational continuity, we will soon introduce a new binary file enabling seamless operation without our involvement and encourage all node operators to upgrade as soon as possible.”
To sustain mining activities on the network, a final token economy update has allotted 566 million KDA, which means miners will receive automatic rewards until the year 2139.
KDA Coin
A team from Kadena’s community might step up independently to manage development. This could bring excitement and a surge similar to what happened with the Terra Rebels. However, it’s important to remember that such initiatives have often ended in failure.
As of today, KDA Coin continues to suffer a loss of nearly 60%, and the fullness of the decline candle suggests that more losses could follow. The price is now likely to fall to a new all-time low below October’s trough, and what was once a coin trading over $9 is set to have a significantly reduced price, possibly with an additional zero.