There is controversy whether cancelling before the first episode of a fanime is alright or not. Fanime fans tend to be dissapointed when someone cancels their fanime, and often are against cancelling. However, fellow fanimators often understand that managing and animating a fanime is a LOT of work. The majority of the fanimation community are teenagers that consider fanimation as a hobby. Thus, it should be taken as a hobby an not seriously as a profession.
Other fanimes that have first episodes, like Eternal or Guardian Angel sometimes get cancelled. The fanimator often gets put under stress of fans or real life, so the actual fanime never goes past the first episode.
However, some fanimators like JCStars and Diamant88 have ongoing fanimes that have passed the first episode stage. In the case of JCStars, his fanime underwent modifications.
Another current animator 2030films has made it past the first episode hurdle and is planning to continue making animation as life permits.