Ardana is a stablecoin built on the Cardano blockchain, and they raised more money than any other project on Cardano – $10.8m in funding to be precise. This fundraising round was led by Three Arrows Capital, the now insolvent investment firm.
Ardana has now ceased operations, and foregone promises to reach certain milestones – having not yet been listed on even a Tier 2 Exchange.
Charles Hoskinson, co-founder of Ethereum and Cardano, was an early C-Fund investor into Ardana and states in his latest video that the handling of the situation was ‘utterly disgraceful’ with his investment being a “total loss”:
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“I was an investor in these projects through the C-Fund… and it looks like it’s probably a total loss… My understanding is, having talked to the C-Fund, that the first time we were informed that these projects were having trouble was through Twitter, the same time as you guys. Which is utterly disgraceful and it shouldn’t have happened. If a project is going to fail, it would be nice to let your investors know prior going to twitter and letting the world know… it’s my understanding the contact came publicly not privately and I’m deeply disappointed by that"
Hoskinson admits that sometimes projects will fail, but ultimately highlights a need for more due diligence and better communication:
“The reality is in venture capital is that 80/90% of new projects will fail… this is the nature of new endeavours. Maybe business ideas were only viable during the bull market. For things to be legitimate and real they have to survive the bull and the bear market. So the community has to come together… and come up with ways to resolve them [issues] one by one.”
Overall, Hoskinson places most of the blame on the Ardana leadership team, being wholly unsatisfied with their management of issues:
“They should be more willing to regularly engage with the community, have weekly or monthly updates… including where they’re having troubles or problems…they should be intellectually honest about where they’re at”
On the Flipside
- Cardano (ADA) network sees a 90% increase in activity with 1.2 million delegated wallets.
Why You Should Care
When investors and retail customers lose money, there is usually an effect on the market. Charles Hoskinson is a respected voice in the community and his analysis of the situation is fair. There is certainly pressure on projects to communicate better during the current market conditions.
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