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Binance lists Mantra Dao in its innovation zone while some cry ‘fraud’

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The popular crypto exchange Binance has been adding various projects to its ecosystem. While some projects are riskier and have high volatility, Binance adds them to its Innovation zone so that users are able to use caution while dealing with these fairly new projects. Its latest addition to its innovation zone has been Mantra Dao [OM].

A community-governed decentralized finance [DeFi] project, Mantra Dao will open trading on its first major exchange, Binance from 8 March for OM/BTC, OM/BUSD, and OM/USDT pairs. The project that focuses mainly on staking, lending, and cross-chain DeFi products has been involved with some controversies lately.

According to Colin Wu, the project was termed a “fraud” and has rattled a part of the Chinese community. Wu noted:

“Binance announced the launch of the fraud project MANTRA DAO (OM), which aroused surprises and accusations from Chinese community leaders. The founder of the project opened a casino, and most of the team has a background in fraudulent ICOs.”

In October 2020, when the project was newly introduced, the market was filled with speculators and many thought of Mantra Dao as a scam project given the sudden rise and fall of its price.

However, there was no substantial proof to back this claim.

This listing of the project comes right after Binance Smart Chain listed the Meerkat Finance project. The project drained 13.96M Binance USD [BUSD] and 73,653 BNB. The incident was the first and largest rug pull noted by the Binance Smart Chain.

At the time of writing, Binance has not yet responded to these allegations with regard to its latest listing that questions Mantra Dao’s legitimacy.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.