Lekker Capital’s founder Quinn Thompson has expressed concerns about Ondo Finance amid the recent Mantra scandal, raising critical questions about the protocol's transparency and true metrics.
Thompson's Warning
On April 14, Quinn Thompson issued a warning about Ondo Finance on platform X, suggesting that it may help avoid financial losses in light of the recent Mantra $OM token scandal. He urged investors to pay close attention to previous warnings regarding the Ondo project.
Suspicion Regarding Ondo Finance's TVL
Thompson raised concerns about the possibility that Ondo Finance's Total Value Locked (TVL) is artificially inflated. He asked researchers to confirm whether most of the TVL is generated from selling tokens and redirecting the proceeds back into the protocol to create an illusion of organic demand. "Can one of the on-chain investigators confirm for me if it is true that the majority of Ondo’s TVL… is from the team’s selling of $ONDO tokens with the proceeds funneled back into the protocol to give off the appearance of organic growth?" Thompson queried.
Ondo's Financial Model and Revenue Potential
Quinn Thompson also criticized Ondo's revenue model, pointing out its vague nature and lack of actual revenue despite a lofty valuation of $7 billion. He noted that the 0.15% take rate was waived until 2025, and once the fee is implemented, users may transition to safer and more efficient alternatives. "That is over a 7,000x FDV/revenue multiple on a near-zero margin business," he added.
Quinn Thompson's warnings about Ondo Finance raise serious questions regarding transparency and trust in the project. Continued public scrutiny and research on this front may be essential to maintaining market relevance and protecting investors.
