Kadena Announcing Bankruptcy Is Just the Start of the Aftermath of the $20 Billion Liquidation

Kadena announcing bankruptcy is just the start of the aftermath of the market crash

A reputed analyst believes that the $20 billion liquidation event led to the end of many

More projects may announce their closure in the coming days ahead.

The crypto community was shocked to hear that the highly promising blockchain Kadena (KDA) announced its bankruptcy. This announcement seems to be the aftermath of the $20 billion liquidation, and analysts expect more projects to make similar announcements in the near future. In detail, one analyst believes that Kadena announcing bankruptcy is just the start of the aftermath of the $20 billion liquidation.

Kadena Announces Bankruptcy Is Just the Start

During the $20 liquidation event, where the price of crypto assets fell dramatically, especially for altcoins that fell between 70% and 90%, the largest single-day liquidation event was no small matter. In particular, many altcoin assets fell to zero, wiping out several projects in the space. Over the next few days, a few promising assets like XRP went on to claim higher targets of up to 50% of their fall, but not all altcoins were as lucky

Some analysts predicted a huge bear market to commence following the liquidation, while others believed the dip would wipe out several promising altcoins that simply couldn’t find a way to survive the sudden crash. One such project, unfortunately, happened to be a highly respected blockchain Kadena. Many hoped to see its native asset KDA go on to hit new ATH prices this bull cycle

Instead, it seems that Kadena has announced its decision to shut down after the market crash. At the moment, the entity stated that it would no longer be able to continue business operations and went on to immediately halt all activity and maintenance of the Kadena blockchain. The entity reveals the reason behind this decision to be deteriorating market conditions as the main reason behind its closure

Analyst Expects Similar Announcements to Follow

For now, the Kadena staff has been informed, and only a small team remains to handle the transition and wind-down period. This was a brutal truth for the crypto community and KDA enthusiasts to face. With the price of KDA falling over 50% overnight, this decision was no doubt a difficult one to make. The team confirmed that the Kadena blockchain would remain active, with the network being operated by independent miners

As we can see from the post above, this reputed silver-tongued analyst says that Kadena’s bankruptcy announcement is just the beginning and that we are just now seeing the first effects of the liquidation cascade from weeks ago. He says that soon, the market will see more bankruptcy announcements from trading firms and altcoin projects, stating that, “It’s obvious that many things broke on that day”.