Kadena (KDA) Drops Over 61% Today After Kadena Organization Announced Its Closure

The post Kadena (KDA) Drops Over 61% Today After Kadena Organization Announced Its Closure appeared first on Coinpedia Fintech News

Kadena (KDA) price has recorded its worst single-day loss since inception. The small-cap altcoin dropped over 61% during the past 24 hours to trade at about $0.79 on Tuesday, during the mid North American session. 

According to market data analysis from TradingView, the KDA/USD pair slipped below its October 11 and the 2021 lows as traders rushed to exit the token. 

Why is Kadena Price Capitulating Today?

The main reason why the KDA price capitulated today was largely due to the announcement that the Kadena Organization is winding down its operations. The Kadena Organization announced that it is no longer able to continue business operations and will be leaving the Kadena Blockchain with the community.

“For operational continuity, we will shortly provide a new binary that ensures uninterrupted operation without our involvement, and will be encouraging all node operators to upgrade as soon as possible,” the announcement noted.

Expected Impact on the KDA Tokenomics

The KDA tokens have a maximum supply of 1 billion and a circulating supply of 335 million. Following the announcement, around 83.7 million, which was locked out until November 2029. 

As a proof-of-work secured token, around 566 million KDA will be distributed to miners until the year 2139. The Kadena Organization announced that it will engage with the Kadena community on how to maintain the chain’s governance.

At the time of this writing, Kadena had a fully diluted valuation of about $96 million and a daily average traded volume of around $84 million. At its height, KDA had a market of about $3.2 billion during the 2021 crypto bull market.