Cardano Stablecoin Project Shuts Down Over 'Funding, Timeline' Uncertainty After FTX Collapse

Ardana, a DeFi and stablecoin ecosystem building on Cardano ADA/USD, halted development on Thursday, citing "funding and project timeline uncertainty."

What happened: Ardana Labs said it will keep the project open-source for builders, while “treasury balances and remaining funds will be held until another competent community dev(eloper) team takes over our work."

Hello Ardana community,

Unfortunately due to recent developments with regards to funding and project timeline uncertainty, the Ardana project has had to come to a halt. Our code will remain open source for builders to continue our work going forward as they wish.

— Ardana - DeFi Hub of Cardano (@ArdanaProject) November 24, 2022

The crypto market experienced a jolt after FTX FTT/USD, a crypto exchange, collapsed, sending shockwaves through the market. "Development on Cardano has been difficult with a lot of funding going into tooling, infrastructure and security. This alongside the uncertainty around development completion has led to the best course of action being halting development of dUSD,” Ardana tweeted.

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Cardano’s cFund, Three Arrows Capital and Ascensive Assets backed Ardana last year after investing $10 million in the company. The firm was developing stablecoin minting and foreign exchange services and hoped to become “the MakerDAO and the Curve Finance of Cardano.”

In January, Ardana claimed that almost all of the smart contract development was finished. “We could launch our products within a few weeks if we wanted. However, the underlying network on Cardano is currently not ideal for any protocol dealing with liquidations; it's not safe enough for us to launch without risking user funds.”

Price Action: ADA is trading at $0.31 down 2.02% in the last 24 hours, according to Benzinga Pro.
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