What happened?
Kadena’s core organization said it has run out of money and will stop all business activity and active maintenance, though the proof‑of‑work network itself will keep running. The announcement followed a massive token selloff — KDA plunged roughly 77% in a month and has lost over 99% from its all‑time high — and the team said it will keep a small group on to wind down operations. Major exchanges have started delisting KDA and some services like deposits and perpetuals are being suspended or closed.
Who does this affect?
Token holders and retail investors are the most directly hit, many seeing large losses and facing reduced liquidity and fewer trading options as exchanges delist KDA. DeFi projects and DEXes built on Kadena have seen TVL collapse and users pull liquidity, hurting developers and protocol contributors. Miners, remaining node operators, and any employees kept for the transition will be responsible for keeping the chain running while the broader community decides whether to take over governance and maintenance.
Why does this matter?
The shutdown and steep price crash erase market value, force delistings, and reduce liquidity, which can ripple into related tokens and projects that relied on Kadena’s ecosystem. It’s a warning for investors and builders about the crowded Layer‑1 market and the risk that technical promise alone won’t sustain adoption or funding, which could shift capital toward stronger ecosystems like Ethereum and Solana. Overall, the event weakens investor confidence, may prompt tighter listing standards by exchanges, and highlights how liquidity and network effects drive market winners and losers in crypto.