The Spotlight on ONDO Fundamentals
Thompson revisited his previous thread from March 18. He asked on-chain investigators to confirm whether Ondo Finance’s Total Value Locked (TVL) was artificially inflated by the team selling tokens and redirecting funds into the protocol. This would create the illusion of organic user adoption in crypto.
“Can any on-chain investigators confirm if it’s true that the majority of Ondo’s TVL… comes from the sale of $ONDO tokens by the team, with the proceeds reinvested in the protocol to give the appearance of organic growth?” he wrote.
To support his claims, Thompson referenced his message from October 2024 where he criticized Ondo’s diluted $7 billion valuation despite no revenue and offering products (USDY and OUSG) that are just “wrappers on Blackrock’s BUIDL.”
He also highlighted that the protocol generated no revenue with its 0.15% fee temporarily suspended until 2025. This suggests that users will likely migrate to BUIDL once the fee is reinstated. Indeed, it would be safer, cheaper, and offer better returns. Even if Ondo started charging fees, it would only make around $975,000 annually, resulting in a diluted valuation/revenue multiple of over 7,000 in a low-margin business without a competitive edge.
ONDO : Concerning Shadows
A user, @TimiBot, reacted by commenting that it was a well-known secret. He attached a screenshot of a message circulating in a Telegram group. This message describes the alleged mechanisms behind the artificial inflation of Ondo’s TVL.
This suggests that while the TVL funds are real, Ondo Finance’s TVL metric may not be representative of reality. In fact, a significant portion of the capital in the protocol does not fund DeFi but is instead invested in tokenized US Treasury bonds. These are traditional low-risk financial instruments.
Ondo Finance could be using artificial TVL inflation by selling its own ONDO tokens and reinvesting that money into its own protocol. The funds invested in Treasury bonds are also part of the declared TVL. However, they are not used for DeFi activities like lending, borrowing, or trading. These two tactics would create a misleading picture of the protocol’s actual adoption.
Our Verdict : Between Caution and Hope
Faced with these troubling allegations, investors must remain cautious about Ondo Finance’s practices. The precedent of the Mantra debacle urges greater caution in evaluating any RWA project, especially when red flags are raised by recognized industry players. If you are looking to invest in cryptos, including altcoins, you can do so through Bitget. It’s a reliable and secure platform. Currently, you can benefit from a welcome offer upon registration.
