Kadena’s Meltdown: From ‘Next-Gen Blockchain’ to Full Shutdown and Fraud Allegations

Kadena, once hailed as a next-generation blockchain promising scalable proof-of-work smart contracts, has officially shut down its operations, and the aftermath is anything but quiet.

The team announced on X that it would cease all business activities and active maintenance of the Kadena blockchain, citing “unfavorable market conditions.”

The statement marked the end of a years-long effort to compete with major Layer-1 networks, sending the project’s native token, KDA, tumbling by over 50% in the hours following the announcement.

Kadena winds down, but Its blockchain lives on

In its farewell post, Kadena’s team explained that while the organization itself is closing, the blockchain will remain operational, as it is run by independent miners rather than the company.

The network’s proof-of-work model, they said, ensures decentralization even after corporate withdrawal.

“We regret to announce that the Kadena organization is no longer able to continue business operations and will be ceasing all business activity and active maintenance,” the post read, adding that a small transition team would handle the wind-down.

The company emphasized that a new binary release would soon be distributed to ensure network continuity and encouraged node operators to upgrade promptly.

Kadena also noted that more than 566 million KDA tokens remain to be distributed through mining rewards until 2139, while 83.7 million KDA are still subject to token lockups until 2029.

According to the statement, these existing emissions and decentralized operations could allow the Kadena ecosystem to continue under community governance, independent of the founding team’s oversight.

Community backlash and fraud allegations

While Kadena’s shutdown cited “market conditions,” the crypto community quickly began circulating more severe accusations. A viral post from X user @katexbt alleged that the project’s collapse stemmed from internal misconduct rather than simple financial strain.

The post claimed Kadena’s founders had borrowed startup funds from family members and later refused repayment once the project gained traction.

It also accused the team of fabricating transaction capacity claims, such as the blockchain’s advertised 480,000 transactions per second, and of misrepresenting partnerships to attract investors.

The same post alleged that Kadena insiders sold tokens worth between $20 million and $80 million during peak prices, while leaving vendors and marketing partners unpaid.

One of the more unusual claims involved Kadena’s DEX, Kaddex, whose domain was reportedly linked to a golf club in Rome allegedly tied to the CEO’s family.

The allegations have fueled growing skepticism around the project’s legacy. Some users, like @yourfriendSOMMI, called KDA a “massive rug,” while others joked that the saga could inspire a “Netflix documentary on crypto founders.”

Kadena has not issued a response to the allegations, and as of now, its blockchain remains active under independent maintenance.

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