This week, the cryptocurrency neighborhood was rocked after Kadena’s sudden shutdown announcement despatched the KDA worth crashing by over 60% in a number of hours. The huge worth collapse triggered an enormous sell-off as buyers scrambled to grasp the abrupt closure of the once-promising blockchain undertaking. Quickly after, a stunning exposé from analysts revealed that the issues ran far deeper than market conditions, hinting at severe inside misconduct and mismanagement.
Kadena Scandal Uncovered After KDA Worth Crash
A day after the KDA worth crash on Tuesday, crypto analyst Lovrin revealed on X social media that a number of Kadena staff have been allegedly caught shorting the token with leverage simply earlier than shutdown announcements, securing tens of thousands and thousands of {dollars} in earnings. The stories point out that crypto exchanges purportedly facilitated these trades, portray an image of coordinated internal manipulation.
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Including gasoline to the scandal, a viral X publish from crypto market commentator @Katexbt exposed extra allegations in opposition to the Kadena management. The publish 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 in regards to the legitimacy of the Kadena undertaking.
The staff additionally allegedly employed a KOL agency, prioritizing promoting tokens for actual cash over paying the advertising and marketing agency for its companies. Further allegations level to complicated ties between Kadena’s management and affiliated corporations, together with the Kaddex area, which was mentioned to have been registered below Popejoy’s Kadena Eco’s household golf membership in Italy.
Katexbt claimed that the blockchain undertaking was slapped with a lawsuit in some unspecified time in the future, nevertheless it made little distinction because the staff hid behind a maze of LLCs. Much more stunning, the crypto commentator alleged that the Kadena staff had labored with Francesco Melpignano, the previous CEO of Kadena Eco, to extract giant quantities of KDA, which have been then bought close to peak costs, netting an estimated $20 million to $80 million in earnings. 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 released a public assertion confirming the cessation of all enterprise operations. The staff careworn that, regardless of the group’s wind-down, the Kadena blockchain would proceed to function independently below a decentralized model.
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The announcement described the closure as a response to market volatility and unfavourable conditions, expressing gratitude to workers, companions, and the neighborhood. The Kadena staff clarified that the blockchain itself was not owned or operated by the corporate, emphasizing that independent miners and maintainers would govern it sooner or later. In addition they famous that about 566 million KDA stay to be distributed as mining rewards by 2139, whereas 83.7 million tokens are scheduled to come back out of lockup by November 2029.
Featured picture from Getty Pictures, chart from Tradingview.com
