Mantra DAO (OM) is a DeFi protocol that offers services such as loans and mortgages which has been recently listed on the Binance Innovation Zone. The protocol was built on top of the Ethereum network, but it is capable of offering cross-chain functionality on Binance Smart Chain.
However, this particular listing has attracted plenty of criticism from the Chinese community as it has been alleged that the founders of Mantra DAO have a fraudulent past.
Members of the Chinese crypto community believe that the founders of Mantra DAO were previously involved in several fraudulent ICOs in 2017 and that the founder of the project has opened a casino.
This has made people think that the success of the Binance Smart Chain (BSC) has led to the company overlooking the shortcomings of some of the projects that get to be listed on BSC.
“There are some opinions in the Chinese community that as long as you agree to use Binance Smart Chain or Polkadot, Binance will significantly lower the listing standards, and some fraudulent projects will appear. Especially the Polkadot chain is full of fraud projects from China.”
The accusations are pretty noteworthy, especially since there was the case of another BSC-listed project, Meeakat Finance, which was allegedly rug pulled for around $32 million only a day after it was listed.
Binance, on its part, has declared that it has a research committee made of five members who do all the necessary background research before they give their approval for a project to be listed.
BSC is enjoying an increased level of popularity these days following the rising gas fees on the Ethereum network, which has made several DeFi protocols unusable by many.