Crypto News: Kadena Price Crashes 60% As Protocol Sunsets Operation

The company plans to release a new software update soon to make sure the blockchain keeps running without its support.

The statement added that over 566 million KDA tokens are still set aside for mining rewards that will last until the year 2139.

Around 83.7 million KDA will also come out of lockup by November 2029. The team said it will work with the Kadena community to help move control of the network to community members.

The firm appreciates its employees, users, and partners for supporting the project over the years.

The company also mentioned that they hope the blockchain will continue under community management.

Crypto News: KDA Price Crashes After the News

Meanwhile, the price of Kadenas token, KDA, dropped sharply after the shutdown was announced.

Within hours, the token fell from $0.22 to about $0.096. By later in the day, the price was around $0.07675, a fall of more than 63%.

Kadenas market value dropped from $46.8 million to around $32 million. The total value locked (TVL) in its network also fell to less than $190,000.

This marks a 98% fall from its highest point of $9 million in March 2022.

Traders and former investors on X said the fall of Kadena shows how many Layer-1 blockchains have struggled since the last crypto boom.

Kadena had once been seen as a strong competitor to Ethereum, Solana, and Avalanche.

The project promoted its low transaction fees and high scalability through its parallel chain design.

At its peak in 2021, KDA reached an all-time high of $27.64 when the crypto market was near its top.

The token was popular among investors who believed Kadena could be a blockchain solution for businesses.

Now, the tokens steep fall has raised doubts about whether the project can survive without its founding company.

Crypto News: Investors Prepare a Class Action Lawsuit

It is worth mentioning that the community reaction to Kadenas shutdown has been strong.

Kaddex, a decentralized exchange built on Kadena, announced plans to start a class action lawsuit against Kadenas directors.

Class Action Mobilization Against Kadena | Source: Kaddex

The group said it wants to represent investors who lost money after the tokens fall.

In crypto news, Kaddex said in its post, the case will likely be filed in the United States but could also extend to other countries if Kadena has assets there.

The group said it is working to hire lawyers and will contact people who comment or sign up to join the case in the coming weeks.

Many users online expressed frustration, saying they felt let down by the companys leadership.

Others said they hope the networks community and miners can keep it running without the organization.

Notably, as Kadena closes its business and moves to community control, its future remains unclear.

The project that once aimed to be a major blockchain platform is now facing one of its biggest tests.