This week, the cryptocurrency neighborhood was rocked after Kadena’s sudden shutdown announcement despatched the KDA value crashing by over 60% in just a few hours. The huge value collapse triggered an huge sell-off as buyers scrambled to know the abrupt closure of the once-promising blockchain venture. Quickly after, a stunning exposé from analysts revealed that the issues ran far deeper than market circumstances, hinting at severe inner misconduct and mismanagement.
Kadena Scandal Uncovered After KDA Value Crash
A day after the KDA value crash on Tuesday, crypto analyst Lovrin revealed on X social media that a number of Kadena workers have been allegedly caught shorting the token with leverage simply earlier than shutdown bulletins, securing tens of thousands and thousands of {dollars} in income. The studies point out that crypto exchanges purportedly facilitated these trades, portray an image of coordinated inner manipulation.
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Including gas to the scandal, a viral X submit from crypto market commentator @Katexbt uncovered further allegations towards the Kadena management. The submit claimed that the Kadena founders, Stuart Popejoy and Will Martino, have been allegedly sued by members of the family over a private mortgage used to fund Kadena, elevating questions on its monetary transparency from the outset.
Katexbt asserted that the blockchain was successfully non-functional, claiming a throughput of 480,000 transactions per second, but it lacked actual customers or wallets. Partnerships and institutional involvement that have been publicly promoted have been reportedly exaggerated or fabricated, including additional doubts concerning the legitimacy of the Kadena venture.
The workforce additionally allegedly employed a KOL company, prioritizing promoting tokens for actual cash over paying the advertising agency for its companies. Further allegations level to complicated ties between Kadena’s management and affiliated corporations, together with the Kaddex area, which was stated to have been registered below Popejoy’s Kadena Eco’s household golf membership in Italy.
Katexbt claimed that the blockchain venture was slapped with a lawsuit sooner or later, however it made little distinction because the workforce hid behind a maze of LLCs. Much more stunning, the crypto commentator alleged that the Kadena workforce had labored with Francesco Melpignano, the previous CEO of Kadena Eco, to extract giant quantities of KDA, which have been then offered close to peak costs, netting an estimated $20 million to $80 million in income. Following this, neighborhood members reportedly ousted Melpignano, although Katexbt alleges that the previous CEO stays on a shell firm’s payroll.
About The Kadena Shutdown
On Tuesday, Kadena launched a public assertion confirming the cessation of all enterprise operations. The workforce careworn that, regardless of the group’s wind-down, the Kadena blockchain would proceed to function independently below a decentralized mannequin.
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The announcement described the closure as a response to market volatility and unfavourable circumstances, expressing gratitude to employees, companions, and the neighborhood. The Kadena workforce clarified that the blockchain itself was not owned or operated by the corporate, emphasizing that impartial miners and maintainers would govern it sooner or later. Additionally they famous that about 566 million KDA stay to be distributed as mining rewards via 2139, whereas 83.7 million tokens are scheduled to come back out of lockup by November 2029.
Featured picture from Getty Photos, chart from Tradingview.com
