What makes/made IPFS special was how it could be seen with relative ease on the standard internet. That feature allowed it to bypass censorship. I cannot say I am surprised that the funding was not re-upped since it seems like the modern web really loves censoring the crap out of things.

Edited: I also liked how it bypassed the traditional domain system.

These are good qualities in general; but it's worth asking why this anti-censorship technology required funding from one organization (Protocol Labs) that could cut off that funding and now has done so. Being economically non-viable without grants is one way that anti-censorship technology is ineffective at its stated goal.