Kadena (KDA) has experienced a significant price drop of over 60% following the announcement that the company behind the blockchain is ceasing its business operations. The decision, communicated on October 22, 2025, indicates an immediate halt to all business activities, a development that has unsettled investors and prompted the initiation of plans for a global class-action lawsuit.
Kadena Ceases Business Operations
Kadena, a blockchain project co-founded by former JPMorgan engineers Stuart Popejoy and Will Martino, has officially declared an end to its business operations. The company stated in an update that it is closing all activities and will no longer be involved in maintaining or promoting the Kadena blockchain.
In a public statement on X, the company attributed the decision to challenging market conditions that made continued operation unsustainable. The team confirmed that all staff have been notified of the shutdown, with a minimal group remaining to oversee the transition process.
Kadena also clarified that the blockchain itself is expected to continue operating due to its decentralized nature. This means the network will be maintained by independent miners rather than the company.
The company intends to release a new software update shortly to ensure the blockchain can operate independently without its direct support. The statement also noted that over 566 million KDA tokens are reserved for mining rewards, which are projected to continue until the year 2139. Additionally, approximately 83.7 million KDA tokens are scheduled to be unlocked by November 2029. The Kadena team expressed its commitment to working with the community to facilitate the transfer of network control to community members.
The firm conveyed its gratitude to its employees, users, and partners for their support throughout the project's history. The company also shared its hope that the blockchain will persist under community management.
KDA Price Plummets Following Shutdown News
In the wake of the shutdown announcement, the price of Kadena's native token, KDA, experienced a significant decline. Within hours, the token's value fell from approximately $0.22 to around $0.096. By the end of the day, the price had settled near $0.07675, marking a decrease of over 63%.
Kadena's market capitalization saw a reduction from $46.8 million to approximately $32 million. The total value locked (TVL) within its network also dropped to below $190,000, a 98% decrease from its peak of $9 million recorded in March 2022.
Market observers and former investors have commented that Kadena's downturn reflects the broader struggles faced by many Layer-1 blockchains since the previous crypto boom. Kadena was once positioned as a formidable competitor to established platforms like Ethereum, Solana, and Avalanche. The project highlighted its advantages of low transaction fees and high scalability, facilitated by its unique parallel chain design.
At its highest point in 2021, KDA reached an all-time high of $27.64 during a period of peak market enthusiasm. The token had garnered considerable interest from investors who believed Kadena offered a viable blockchain solution for enterprise-level applications. However, the token's dramatic fall has now cast doubt on the project's ability to sustain itself without the backing of its founding company.
Investors Mobilize for Class-Action Lawsuit
The community's reaction to Kadena's shutdown has been notably strong. Kaddex, a decentralized exchange operating on the Kadena blockchain, has announced its intention to initiate a class-action lawsuit against Kadena's directors.
The group aims to represent investors who have incurred financial losses following the token's price collapse. According to Kaddex's statement, the legal proceedings are likely to be filed in the United States, with potential extensions to other jurisdictions if Kadena holds assets there. The group is actively working to secure legal representation and plans to contact affected individuals in the coming weeks.
Many online users have voiced their frustration, expressing feelings of betrayal by the company's leadership. Others have expressed hope that the network's community and miners can successfully maintain its operation independently.
As Kadena transitions its operations to community control, its future trajectory remains uncertain. The project, which once aspired to become a leading blockchain platform, now faces its most significant challenge.