Ardana, a stablecoin project being built on the Cardano blockchain, announced in a Nov. 24 Twitter post that the project has been halted due to funding and uncertainty over its timeline. The once-promising project raised US$10 million from the now-bankrupt crypto hedge fund Three Arrows Capital, cFund, Justin Sun of Tron and others in fundraising rounds completed in October 2021.
See related article: Cardano, blockchain payment firm Coti to launch algorithm stablecoin Djed in Jan 2023
Fast facts
- The project said in its tweet that building on Cardano had been difficult with substantial funding going into tooling, infrastructure and security. This along with the uncertainty around development completion led to halting the development of dUSD, Aradana’s decentralized stablecoin, the tweet said.
- It added that the project code will remain open source for interested developers.
- The project said the remaining funds and treasury balances will be held by Ardana Labs until another developer team comes forward to continue the work. The project’s native token, DANA, tumbled following the announcement and was trading at $0.008284, down 42.2% in the last 24 hours at the time of publishing.
- Some Twitter users called out Ardana for its lack of dedication and said the project was blaming Cardano. Cardano founder Charles Hoskinson said he likely lost US$500,000 on the project. John O’Connor, director of IOHK’s (Input Output, the blockchain and engineering company backing Cardano) African operations, said he was an investor in the project as well and was expecting to see a decentralized exchange from Ardana this month.
- Ardana was working on developing an on-chain asset-backed stablecoin and a decentralized stable-asset DEX. They had announced on Jan. 1 that most of the product and smart contract development was finished and they could launch products within weeks.
- See related article: Input Output announces privacy-centric blockchain and token on Cardano