Key Takeaways
- Kadena Organization has suspended operations due to challenging market conditions.
- The price of Kadena’s native cryptocurrency, KDA, has seen a substantial decrease.
- The Kadena proof-of-work blockchain is expected to continue operating as long as miners and maintainers remain active.
Kadena Organization Winds Down Operations
The entity that has been supporting the Kadena blockchain announced it is ceasing its operations. In a public statement, the Kadena Organization cited current market conditions as the primary reason it can no longer sustain its business activities. This decision means that ongoing initiatives focused on promoting and supporting Kadena’s decentralized technology will halt. The organization expressed its appreciation for the support from its community and stakeholders.
Despite the organization’s closure, the Kadena proof-of-work blockchain is anticipated to remain functional. This continuation depends on the ongoing involvement of miners and network maintainers. However, active business operations and support from the organization will immediately cease.
Kadena Blockchain’s Background and Tokenomics
Launched in 2019 by Stuart Popejoy and William Martino, who previously contributed to JPMorgan Chase’s Kinexys blockchain, Kadena currently has a significant portion of its native token, KDA, yet to be distributed. Approximately 566 million KDA tokens are designated for future mining rewards, with the mining process scheduled to continue until the year 2139.
KDA Token Experiences Significant Price Drop
Following the news of the Kadena Organization’s discontinuation, the KDA token has undergone a severe price correction. The KDA/USDT trading pair has shown a sharp downward trend, reflecting negative market sentiment.
Data indicates that KDA lost approximately 60% of its value within a 24-hour period. The token, trading around $0.24 on Tuesday, dropped to approximately $0.087 after the announcement.
Technical indicators further underscore the bearish outlook for KDA. The Relative Strength Index (RSI) is currently at 35, suggesting the token is in bearish territory and approaching oversold conditions. Concurrently, the Moving Average Convergence Divergence (MACD) lines are in negative territory, reinforcing the predominant bearish trend.
If selling pressure continues, KDA could potentially fall below its recent low of $0.057, which was recorded on October 10. The cryptocurrency has significantly decreased from its all-time high of $28, reached in November 2021, marking a decline of nearly 99%. The absence of an active development team is anticipated to present considerable challenges for KDA’s price recovery in the medium to long term.
Expert Analysis
The winding down of the Kadena Organization represents a pivotal moment for the Kadena blockchain ecosystem. The cessation of its operations, attributed to market pressures, has resulted in a substantial devaluation of its native token, KDA. While the Kadena blockchain itself may persist due to the continued efforts of miners and maintainers, the lack of organizational backing raises significant questions regarding its future development and KDA’s long-term viability.