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Cardano Community Raises Red Flags on Two Projects: Details

Thu, 11/24/2022 - 13:21
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Tomiwabold Olajide
Cardano-based projects Ardana and Orbis coming to halt
Cardano Community Raises Red Flags on Two Projects: Details
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According to a recent announcement, Cardano-based projects Ardana and Orbis are grinding to a halt. Both projects cited funding constraints and uncertain conditions; more surprising is the coincidence of the two projects' announcements.

According to Cardano-focused Twitter account ADA Whale, there is more than meets the eye regarding the two projects, as he mentioned that "certain things don't add up."

The Ardana project explained the reason behind its action, saying that development on Cardano was difficult, with a lot of funding going into tooling, infrastructure and security. It noted that this, along with uncertainty around the completion of development, led to the halting of dUSD, the stablecoin it worked upon.

A user questioned Ardana's claims regarding funding constraints, saying, "You raised $10 million. How's that money gone in 1-2 years on development? I don't understand."

Red flags

This was not the first time Ardana has put up such worrying concerns. At the start of the year, Ardana claimed it had finished almost all of its product development and could have launched in a few weeks if it wanted. It did, however, make the flimsy excuse that Cardano was not ideal for protocols dealing with liquidations, claiming that it was not safe to launch without putting user funds at risk.

This stirred up concerns in the Cardano community, which sought clarifications on what that meant. The Ardana project was slammed for placing the blame for its failures on the Cardano blockchain.

Given current happenings, Cardano-based lending protocol AADA Finance has removed DANA token, the native asset of the Ardana project, from its platform.

Orbis, another project that said it was halting, stated that investors had pulled out, and it had been badly affected by recent events in the crypto space. It halted its NFT project indefinitely until a continuation plan was set out for the core zk-rollup solution.

Sooraj, who previously worked on the Orbis project, raised some concerns about the project, particularly during its token sale.

All that notwithstanding, the health of the Cardano network remains strong, with a monthly chain density of 3.41%, according to Cardano Explorer data.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.