Ethereum (ETH) co-founder Charles Hoskinson addresses the issue of Ardana, a Cardano-based stablecoin project that recently went out of business. In a new video update, Hoskinson says his investment as an early investor in the project appears to be a total loss. “Over the past few days, I’ve heard complaints about [Ardana] having difficulties, and then [a] tweet claimed that they had stopped operating or at the very least were scaling back to the point where they could no longer fulfill their promises on Twitter. I was an investor in [the] projects through Fund C… It would probably be a total loss, and what was incredibly disgusting to me was that the management of those projects blamed Cardano for their failure.
Ardana said, that building on the Cardano (ADA) blockchain was “difficult” and that they would cease operations but leave their source open. “Unfortunately, the project has had to be put on hold due to recent developments regarding funding and the uncertainty of the project timeline. Our code remains open to builders to continue our work at their leisure. Development on Cardano has been complex due to the large amount of funding foreseen for tools, infrastructure, and security. This, coupled with the uncertainty of completion of development, has led to the best course of action being to stop development of the project.
Hoskinson says that the problem is with the project’s governance rather than the technology behind Cardano or a lack of funding.
“I want to remind everyone that Ethereum raised $18 million, of which they were only able to stake $9 million because they lost $9 million due to market volatility and they adequately hedge their bitcoin and have created the second largest cryptocurrency market in China. This was neither a funding issue, nor a platform issue. It rather looks like it is a governance issue… From what I understand, after discussions with Fund C, we were first informed that it was having issues; it was via Twitter at the same time as you, which is gross and shouldn’t be happening.