Social media chatter is abuzz with speculation about Cardano projects Ardana and Orbis, both of which announced the end of development on the same day.
Ardana bills itself as “the first all-in-one stablecoin ecosystem built on Cardano.” The ecosystem includes the dUSD stablecoin, an AMM DEX called Danaswap, and the DANA governance token.
In November 2021, the project raised $10 million in a strategic funding round led by Three Arrows Capital, CFund and Essential Assets. At the time, CEO and co-founder Ryan Matovu said:
“This funding, along with the investor expertise, allows us to establish Ardana as one of the leading DeFi gateways on the Cardano blockchain. The future is bright.”
Fast forward to now, a post from the company’s Twitter announced the end of development due to “recent developments” and “uncertainty over funding and project timeline”.
Hello Ardana Community,
Unfortunately, the Ardana project had to be shelved due to recent developments regarding funding and uncertainty about the project timeline. Our code remains open source for builders to continue our work as they wish.
– Ardana – DeFi Hub by Cardano (@ArdanaProject) November 24, 2022
DANA token fell 77.8% after the announcement, registering a new low of $0.01158415 in the process. DANA launched on November 22, 2021 and reached an all-time high of $11.27 three days after launch.
Tweet thread went on to say that development was “difficult”, with funding going to “tooling, infrastructure and security”. In view of the “uncertainty over development completion” it was decided that the best course of action would be to halt development.
ardana called on other developers to take over the project, setting aside the remaining money to fund the move. Details of what money is left are not given in the tweet thread.
Orbis follows suit
In quick succession, Orbis also informed the Cardano community that they too were halting development, citing “limited resources and uncertain circumstances”.
Unfortunately, due to limited resources and uncertain circumstances, Orbis Labs is unable to continue construction and the project has stalled. This is a shame, given the great research and work.
— Orbis (@orbisproject) November 24, 2022
Orbis is a Layer 2 solution that uses zkSNARK roll-up technology to aid in scaling and high throughput.
Orbis applied for 1 million ADA funding in its Catalyst Fund 8 round, which closed in May.
According to Reddit user u/demesisx, there were concerns about the lack of a working demo, while asking for all funding to be paid up front. The community rejected Orbis’ funding application due to concerns.
The CEO of Orbis Project is Ryan Matovu, who also founded Ardaño.
Councils of the Cardano community
In response to the news, @cardano_whale Claimed that both projects were a rag bridge. Likewise, @biscoin_io Posted a screengrab of Orbis on Nov. 23, talking about “stopping public NFT sales,” captioned “You Were Warned Before.”
– Bison Coin (@bisoncoin_io) November 23, 2022
Cardano users have reported losing money @CardanoPolice Claiming to be less than CAD$25,000 ($18,700). Several commentators also spoke of losing money while expressing regret for ignoring the red flags.
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