Crypto News: Cardano Founder Steps In as Kadena Faces Major Token Collapse

Kadena shuts down operations causing KDA to drop 60% as Cardano founder Charles Hoskinson reaches out to the community.

Kadena’s recent announcement to shut down operations has triggered a sharp fall in its token price, with KDA dropping by over 60% in just 24 hours.

In response, Charles Hoskinson, founder of Cardano, has reached out to the Kadena community, creating discussions around potential future collaboration.

Kadena Shuts Down as KDA Falls by Over 60 Percent

On Monday, Kadena officially confirmed the shutdown of its business operations, citing challenging market conditions. The team stated it would no longer maintain or support the network, and all ongoing development has been paused.

According to the announcement, “We regret that because of market conditions, we are unable to continue promoting and supporting adoption.” Following this update, the KDA token crashed to $0.089, a decline of more than 60% in 24 hours.

KDA was once valued at an all-time high of $27.64 in 2021. Since then, it has lost over 99% of its value. Its 24-hour trading volume also dropped to about $48 million, with users reporting low liquidity.

Some traders voiced concerns about alleged manipulation, though no verified evidence has been presented.

Charles Hoskinson Reaches Out to Kadena Community

Shortly after Kadena’s announcement, Cardano founder Charles Hoskinson posted on X (formerly Twitter), signaling a willingness to engage with the Kadena community. The outreach sparked interest in whether a partnership or support plan could emerge.

Hoskinson’s message followed the confirmation that Kadena’s core team will no longer manage the blockchain. While business operations have ended, Kadena’s decentralized proof-of-work network will continue running through community governance and independent miners.

In past updates, Hoskinson has shown openness to partnerships with other ecosystems. Earlier this year, he mentioned plans for Lace Wallet to support XRP transactions, reinforcing his support for cross-chain collaboration.

Kadena’s Future Now Depends on Community and Miners

Despite the company’s exit, the Kadena blockchain itself remains active. It will continue to operate without the core team, relying on miners and developers who maintain the decentralized network.

The project also confirmed that KDA tokens will still be distributed through mining rewards until 2139. Over 566 million tokens are expected to remain in circulation over the coming years.

Kadena was launched in 2017 by Stuart Popejoy and Will Martino, both former executives at JPMorgan. The platform was designed to be a scalable and secure Layer-1 blockchain, but it struggled to grow user activity and developer support.

Earlier this year, Kadena launched a $50 million Leap Grant Program aimed at encouraging growth. However, despite these efforts, it was not able to recover market trust or build long-term traction.