Is it OK to have One Giant project in JIRA?

I have encountered a situation which is quiet novel in my 5 years of experience with JIRA. I am now working in a JIRA instance where there is only one Giant Project, all issues are created in that project for the group. Users are creating individual agile boards and treating them as projects (sub-projects). Agile Boards are being used as Pseudo Project construct. Is this a good practice? What would be the impact of such an approach? 

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Not really... think roles, components, versions etc.

Can you explain it in detail. 

Thanks and appreciate your help

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