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Cardano Founder Says He Might Have Lost 500K in Failed Ardana Project

Thu, 11/24/2022 - 15:39
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Tomiwabold Olajide
Ardana cited funding constraints and uncertain conditions
Cardano Founder Says He Might Have Lost 500K in Failed Ardana Project
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Cardano founder Charles Hoskinson has responded to a user question about the failed Ardana project, disclosing that he, too, was impacted by the unfortunate situation.

As reported by U.Today, Ardana, which refers to itself as the DeFi hub of Cardano — an all-in-one decentralized stablecoin ecosystem — said it was coming to a halt. Ardana cited funding constraints and uncertain conditions in its deployment timeline as reasons for its failure.

The Cardano founder, unhappy with the situation, said, "Looks like I might have just lost 500k on it." Hoskinson said he was an investor through cfund, Cardano's early-stage investment fund. He also said he was waiting for a readout from the Ardana team.

Three Arrows contagion?

John O'Connor, IOG Director of African Operations expressed surprise and disappointment on hearing the news. He said he invested in the project, and likewise in cfund. He quipped, "Still trying to find out what happened; last I heard, DeX was meant to be out this month."

O'Connor guessed at what might have caused the Ardana mess. He believes that Ardana having the collapsed Three Arrows (3AC) as its "largest ticket" and a token dump by investors after its financial situation came to light might have been its albatross. 

He confirmed to a user that 3AC was an Ardana investor and its single largest ticket.

In July, crypto hedge fund Three Arrows (3AC) filed for bankruptcy after it failed to meet margin calls from its lenders. The collapse of Three Arrows triggered a downward spiral that wrapped around many crypto investors.

Related
Cardano Community Raises Red Flags on Two Projects: Details

While investors seek to know the way forward in the current mess, the Ardana team stated in a tweet that its remaining funds and treasury balances will be held by Ardana Labs until another competent development team in the community comes forward to continue its work.

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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.