Kadena (KDA) Drops Over 61% Today After Kadena Organization Announced Its Closure
Kadena (KDA) has recently experienced a significant drop in price, marking its worst single-day loss since inception. The small-cap altcoin plummeted over 61% within a 24-hour period, reaching a trading price of approximately $0.79 on Tuesday, during the mid North American session.
Market data analysis from TradingView revealed that the KDA/USD pair fell below its October 11 and 2021 lows as traders hurried to sell off the token. The primary reason behind Kadena’s price capitulation was the announcement made by the Kadena Organization regarding the winding down of its operations. The organization stated that it is unable to sustain business operations any longer and will be departing from the Kadena Blockchain, leaving it in the hands of the community.
In order to ensure operational continuity, the Kadena Organization will soon release a new binary that allows for uninterrupted operation without their involvement. They are urging all node operators to upgrade promptly. This news had a significant impact on the KDA tokenomics. With a maximum supply of 1 billion tokens and a circulating supply of 335 million, approximately 83.7 million tokens were locked until November 2029.
As a proof-of-work secured token, around 566 million KDA tokens will be distributed to miners until the year 2139. The Kadena Organization also mentioned that they will collaborate with the Kadena community to determine how the chain’s governance will be maintained moving forward.
At the time of writing, Kadena had a fully diluted valuation of around $96 million and a daily average trading volume of approximately $84 million. During the 2021 crypto bull market, KDA reached a market cap of about $3.2 billion at its peak.
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