On November 24, Ardana, a renowned decentralized finance (DeFi) and stablecoin ecosystem that was built on top of Cardano (ADA), abruptly halted development. They justified their choice by saying that there was “uncertainty in the financing and schedule of the project.”

However, Ardana Labs will keep any remaining funds and treasury balances under its control “until another competent development team in the community steps up to continue our work.” The project’s source code will remain accessible to anyone who wants to build with it.

The news came out abruptly, leading many individuals to be puzzled. As a result, the decision came as a surprise to many people.

On the other hand, it would seem that the problems have been around for a considerable period of time prior to this point.

Since July 4, Ardana has been conducting what is often called an Initial Participation Offering (ISPO) in order to raise capital for its business activities.

Instead of users donating ADA to developers, staking incentives are given to the developers themselves. This is in contrast to traditional fundraising methods, which allocate the ADA to developers.

The fact that users receive DANA tokens, which are essential for the operation of the platform, as a reward for delegating, creates an incentive for them to continue doing this action.

Unfortunately, issues have arisen for ISPO issuers as a result of the simultaneous drop in the price of DANA and ADA, as well as the drop in returns earned from staking on Cardano as a result of the current crypto winter. Both phenomena are a direct result of the current state of the cryptocurrency market.

The value of Ardana’s native DANA coins has dropped by more than 99.85 percent over the course of the last year.