Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Centralized control spells disaster for Kadena, highlighting the contradiction within crypto's decentralization ideals

Centralized control spells disaster for Kadena, highlighting the contradiction within crypto's decentralization ideals

Bitget-RWA2025/10/21 22:08
By:Bitget-RWA

- Kadena blockchain abruptly ceased operations, causing its token KDA to plummet 47% to $0.121. - The shutdown ended a four-year journey led by ex-JP Morgan executives, halting 2025 roadmap plans for Chainweb EVM and fintech integrations. - Analysts warn centralized governance models risk token viability, as Kadena's collapse highlights crypto projects' fragility amid regulatory and funding challenges. - Despite decentralized network persistence, lack of active development underscores risks of overreliance

The

token (KDA) saw its value plunge by more than 47% after the blockchain’s founding company unexpectedly revealed it would be shutting down all operations. In a message shared on X, the Kadena team announced it "can no longer sustain business operations and will immediately halt all business activities and ongoing support for the Kadena blockchain"[1]. According to the most recent figures, is now priced at $0.121, a dramatic fall from its peak of $27.64 reached in 2021[1].

This closure brings an end to Kadena’s four-year run. The blockchain was established in 2020 by former JP Morgan executives Stuart Popejoy and William Martino. The company had previously laid out an ambitious 2025 roadmap, which included collaborations with Magic Labs, Galxe, and the introduction of Chainweb EVM[2]. With the sudden shutdown, the fate of these planned projects is now unclear, even though the decentralized blockchain itself remains functional.

Centralized control spells disaster for Kadena, highlighting the contradiction within crypto's decentralization ideals image 0

Market participants and analysts responded quickly to the development, with many viewing the loss of company backing as a critical blow to the token’s prospects. “While the decentralized network might continue, the absence of ongoing development and oversight will likely diminish the token’s usefulness and adoption,” commented one crypto analyst who wished to remain unnamed. The situation also brings to light concerns about the long-term viability of blockchain projects that depend heavily on centralized organizations for progress and upkeep.

Kadena’s closure comes at a time of heightened instability in the cryptocurrency sector, where regulatory ambiguity and funding shortages have affected numerous projects. The company’s exit underscores the vulnerability of blockchain startups that lack strong, decentralized governance frameworks. Although the Kadena blockchain may still operate independently, the absence of corporate leadership could discourage both developers and users from participating in the ecosystem.

The 2025 roadmap had highlighted upgrades such as Pact 5, new indexing tools, and partnerships with financial technology firms[2]. However, these initiatives seem to have stalled due to financial or operational setbacks. The abrupt end points to difficulties in securing adequate funding or community support to maintain ongoing operations.

As the crypto sector processes this news, Kadena’s downfall stands as a warning for blockchain ventures about the challenges of balancing innovation with sustainability. The KDA token’s fate illustrates the dangers of depending too much on centralized management in a field that increasingly values decentralization.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

"From Initial Coin Offerings to Gaining Institutional Confidence: The Transformation of Crypto Tokenomics"

- Canton’s tokenomics strategy rejects ICOs, promoting structured, long-term crypto development models to enhance institutional credibility and sustainability. - Regulatory delays like Switzerland’s postponed CARF and U.S. ETF approvals highlight challenges in aligning innovation with compliance and cross-border legitimacy. - Grayscale’s Dogecoin and XRP ETFs signal growing institutional acceptance, though mixed market performance underscores crypto’s volatility and speculative risks. - Advocacy groups lik

Bitget-RWA2025/11/28 17:26
"From Initial Coin Offerings to Gaining Institutional Confidence: The Transformation of Crypto Tokenomics"

ETPs Connect Speculative Tokens with Traditional Financial Markets

- Swiss firm Bitcoin Capital launched Europe's first Bonk ETP on SIX, enabling traditional investors to trade the Solana-based memecoin via conventional financial tools. - Physically-backed ETP eliminates crypto expertise requirements, aligning with global altcoin product surges and U.S. altcoin ETF trends. - Market shift toward speculative assets reflects regulatory clarity and institutional interest, with European regulators cautiously embracing crypto-ETP bridges. - Projects like Kuardun7.0 aim to merge

Bitget-RWA2025/11/28 17:26
ETPs Connect Speculative Tokens with Traditional Financial Markets

The transformation of the Xerox campus in Webster, NY: A calculated move in real estate and infrastructure development

- Webster , NY's Xerox campus redevelopment leverages a $9.8M FAST NY grant to upgrade 300 acres of brownfield infrastructure, creating shovel-ready industrial space by 2025. - Xerox's strategic divestiture aligns with infrastructure timelines, enabling private-sector repurposing of the site as a mixed-use hub with anchor projects like the $650M fairlife® dairy plant. - State-backed upgrades have already driven 10.1% annual home price growth and 2% industrial vacancy rates, positioning the site to capture

Bitget-RWA2025/11/28 17:26
The transformation of the Xerox campus in Webster, NY: A calculated move in real estate and infrastructure development

Ethereum News Update: Amundi’s Integrated Approach Connects Blockchain with Conventional Financial Regulations

- Amundi, Europe's largest asset manager, launched its first Ethereum-based tokenized money-market fund, enabling 24/7 settlements and transparent record-keeping via blockchain. - The hybrid model, developed with CACEIS, combines traditional fund operations with blockchain-based ownership, preserving regulatory compliance while expanding investor access. - Ethereum's dominance in stablecoin and RWA transfers ($105.94B in 30 days) underscores its role in accelerating tokenization, with Amundi positioning it

Bitget-RWA2025/11/28 17:06
Ethereum News Update: Amundi’s Integrated Approach Connects Blockchain with Conventional Financial Regulations