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Blockchain platform Kadena (KDA) announced that it has ceased all business operations. Following the company’s official announcement, the KDA price quickly dropped by nearly 40%.
Chart showing the decline in KDA price.
Kadena said in a statement: “It is no longer possible for us to continue our business operations. The Kadena organization will immediately cease all commercial activities and active maintenance of the Kadena blockchain.”
The company stated that due to current market conditions, they will not be able to continue supporting the project and encouraging its adoption. The Kadena team stated that a small team will remain in place to manage the transition, while all other operations have been halted.
However, the statement stated that the Kadena blockchain will not be completely shut down due to its decentralized nature:
The Kadena blockchain is not owned or operated by the company. The network is run by independent miners, and the smart contracts and protocols on the chain are managed by its own developers.
The company announced that it will release a new software version to ensure the network continues to operate without interruption and will encourage all node operators to upgrade to this version.
Kadena also referenced the previous update on the token economy, stating that 566 million KDA will continue to be distributed as mining rewards until 2139, while 83.7 million KDA will be unlocked by 2029.
Finally, the Kadena team stated that they will collaborate with users on the transition to community management and will share new announcements on this topic in the future.
*This is not investment advice.
