One of the biggest Cardano DeFi projects, Ardana, stopped its development yesterday, on the 24th of November. This comes after Ardana had difficulty finding funds to keep the development going. Moreover, the project’s team informs us that they also had uncertainty regarding the timeline of the project.
Despite stopping the development process, Ardana’s team is encouraging other dev teams to get a hold of the project. Through a tweet, they stated that, although they are halting further development of the project, the code will remain open source. This is because they believe someone should continue the development of this project at some point in time. Not only that, but Ardana Labs is going to hold onto the remaining treasury funds so that another team, if any, has something to work with when they get a hold of the project.
Ardana is the biggest DeFi project in the Cardano ecosystem. Thus, this project is considered the first all-in-one decentralized ecosystem on Cardano. Ardana Labs was also focused on building an ecosystem on top of its $dUSD, a new stablecoin on Cardano. However, the project failed to launch $dUSD in a timely manner several times, leading it to run out of money.
Ardana’s Downfall
Ardana Labs raised $10 million in late 2021. The funding round was led by Three Arrows Capital, Ascensive Assets, and Cardano’s cFund. After its debut, Ardana was immediately hit by the market’s bear cycle. This, of course, had a negative effect on the project’s overall performance. Nevertheless, Ardana Labs still had around $10 million to work on Ardana (DANA) and further develop the process.
Tens of Cardano enthusiasts are highlighting a tweet made by Ardana Labs back in January 2022. In this tweet, Ardana Labs claims that, while its team can launch all the promised products on the blockchain in just a few weeks, Cardano’s network is not ready for such products. This led enthusiasts to believe that Cardano is not an efficient network when it comes to building ecosystems.
The fall of FTX started a ripple effect on the crypto market. After the fall of one of the biggest cryptocurrency exchanges in the world, most crucial investors have backed out from investing in the crypto market. Understanding how sketchy the fall of FTX was, we cannot blame the investors under no circumstance. Of course, however, that FTX’s fall did not cause this series of crashes singlehandedly. High inflation rates; recession; lower company profits; all contribute to the fall of markets, both the crypto market and the stock market.