In the wake of the Mantra $OM token controversy, Quinn Thompson, founder and Chief Investment Officer of Lekker Capital, has renewed public criticism of Ondo Finance (ONDO), raising fresh concerns about the project’s legitimacy and financial practices.
Taking to X on Sunday, Thompson issued a stern warning to the crypto community, urging caution towards Ondo Finance.
“In light of the recent Mantra $OM token scam, probably prudent to recirculate this thread on $ONDO in case it saves at least one person from the eventual financial ruin,”
he wrote, resurfacing an earlier thread he published on March 18.
In the thread, Thompson raised concerns about Ondo Finance’s Total Value Locked (TVL) authenticity, suggesting it may be artificially inflated. He speculates that the team could sell ONDO tokens and reinvest the proceeds to create a false sense of organic user growth. His skepticism has a history, dating back to an October 2024 post where he criticized Ondo’s $7 billion fully diluted valuation, arguing it was unjustified due to a lack of revenue.
He remarked on the simplicity of Ondo’s products, USDY and OUSG, calling them basic wrappers around BlackRock’s BUIDL fund, and highlighted the protocol’s 0.15% take rate, which is waived until 2025. He contends that this results in no revenue despite a high TVL and estimates future annual revenue at only $975,000, which he believes cannot support a multibillion-dollar valuation. Thompson argues that this creates an unsustainable 7,000x FDV/revenue multiple for a low-margin business facing increasing competition.
The thread sparked responses from members of the crypto community. One user, @TimiBot, replied, “Thought this was an open secret,” attaching a screenshot allegedly sourced from a Telegram group chat. The image outlines the suspected mechanics behind the inflated TVL, aligning with Thompson’s claims.
Meanwhile, Mantra CEO JP Mullin attributed the dramatic drop in OM’s price to forced liquidations initiated by centralized exchanges.
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