The blockchain firm behind Kadena announced on Tuesday that it will shut down operations, marking the end of one of crypto’s early proof-of-work projects built for businesses. The team stated it is “no longer able to continue business operations” due to harsh market conditions, forcing an immediate wind-down.
“We are tremendously grateful to everybody who has participated in this journey with us,” the team posted on X. They added, “we regret that because of market conditions, we are unable to continue to promote and support the adoption of this unique decentralized offering.”
Traders reacted swiftly to the announcement. According to data, Kadena’s native token, KDA, plunged nearly 58% within 24 hours, trading at $0.089451 with $111.7 million in daily volume. The broader crypto market remained stable during this period, with a $3.66 trillion capitalization, reflecting only a slight 0.10% rise.
Kadena's Shutdown and Remaining Network Operations
Kadena confirmed that its proof-of-work blockchain will continue running until miners and maintainers fully exit the network. However, all business operations and technical support have ceased immediately. The team noted that approximately 566 million KDA remain to be distributed as mining rewards through the year 2139.
Kadena was founded in 2020 by former JPMorgan executives Stuart Popejoy and William Martino. Their objective was to construct a blockchain that provided Bitcoin’s robust security while simultaneously matching Ethereum’s speed and flexibility. The company was positioned as “the blockchain for business” and had previously claimed it could outperform both Bitcoin and Ethereum. Furthermore, the team established a $100 million developer grant fund in 2022 to attract Web3 builders.
From Ambition to Decline
Kadena commenced with considerable promise but subsequently lost momentum. Trading activity on its network remained significantly lower than that of other major crypto projects. Even a substantial hiring initiative in 2024 did not alter this trajectory. The total value of assets locked on its blockchain reached approximately $9 million in early 2022, a modest figure when compared to larger blockchain networks.
Earlier this year, CEO Stuart Popejoy promoted the Leap Grant Program, a $50 million ecosystem initiative. However, its execution remains unclear. The organization has stated that it will consult with the community regarding the management of locked and unmined tokens.
Kadena’s decline illustrates that superior technology alone is insufficient for survival in the cryptocurrency space. When market pressures intensify and users migrate to other platforms, even projects with significant potential can falter. This situation serves as a reminder that success in this industry is contingent on real-world adoption and traction as much as it is on innovation.