In a shocking turn of events, the cryptocurrency market witnessed a dramatic collapse on April 13, 2025, as the price of Mantra's native token, OM, plummeted by over 90%. The catastrophic drop, which saw the token's value tumble from $6.30 to below $0.50 within just 24 hours, wiped out more than $5.5 billion in market capitalization, sending ripples of panic across trading desks and community forums.
The root cause of this unprecedented crash has been attributed to what the Mantra team described as a "massive forced liquidation" on a centralized exchange. Co-founder John Patrick Mullin took to social media platform X to address the situation, stating that a large investor's actions triggered cascading sell orders, which decimated the order books and accelerated the price decline. "Guys let's get a couple things straight: The TG was not deleted. The Team tokens all remain in custody, verifiable at this address – mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam. We are actively figuring out why these massive forced liquidations occurred and will provide updates," Mullin assured the community.
Despite Mullin's reassurances, the abruptness and severity of the collapse drew comparisons to previous high-profile failures in the crypto space, such as the Terra LUNA implosion and the FTX scandal. Traders and analysts have long raised concerns about OM's tokenomics, particularly its steep fully diluted valuation of nearly $9.5 billion, juxtaposed against a total value locked (TVL) of just $13 million. This disparity has led to skepticism regarding the sustainability of the token's value.
Adding to the intrigue surrounding the crash, on-chain data revealed that millions of OM tokens had been sent to centralized exchanges OKX and Binance in the days leading up to the price drop. Notably, one address linked to Binance reportedly transferred over $36 million worth of OM to OKX, raising questions about whether this was a strategic positioning move ahead of the collapse.
In the wake of the crash, the Mantra DAO is facing legal scrutiny as well. Six members were ordered by a Hong Kong court to disclose financial records in an ongoing lawsuit alleging misappropriation of DAO funds. This legal challenge adds another layer of uncertainty to the project's future, which had only recently secured a virtual asset license from Dubai's Virtual Assets Regulatory Authority (VARA) and announced a $1 billion tokenization deal with real estate giant DAMAC.
Just two months prior, Mantra appeared to be on an upward trajectory, having made significant strides in the regulated crypto space. However, with investor confidence now shattered and key infrastructure taken offline, the future of the OM token remains precarious. It is unclear whether the team will be able to stabilize the project or if this marks the end of another overly-leveraged venture in the volatile world of cryptocurrencies.
As the Mantra community grapples with the fallout, Mullin has committed to addressing the concerns directly. A community connect is scheduled on X to discuss the recent price collapse and the steps being taken to rectify the situation. However, many in the crypto community remain skeptical of the explanations provided so far, citing a lack of transparency and clarity regarding the events that led to the crash.
In a pinned message on Telegram, community lead Dustin McDaniel acknowledged the concerns and stated that the team is actively investigating the situation. Yet, the swift and deep plunge in OM's price has left many questioning the project’s internal governance and accountability.
Moreover, the project has faced accusations regarding the concentration of token supply, with some users claiming that insiders control a disproportionate amount of the circulating supply. Mullin has refuted these claims, emphasizing that the OM token has been in circulation since August 2020, longer than many current participants in the crypto space.
In a market already fraught with volatility, the Mantra incident serves as a stark reminder of the risks inherent in cryptocurrency investments. As the dust settles, investors are left wondering what the future holds for the OM token and the broader implications for the crypto market.
With the crash reverberating through the community, new projects are emerging to capture investor interest. One such project is Mind Of Pepe (MIND), which aims to position itself as a leading AI agent in the crypto space. MIND is currently in presale, offering early-bird prices that are expected to rise once it hits the open market. The developers behind MIND are focused on enhancing the agent's capabilities, including market insight and trend-spotting, to attract a growing user base.
As the cryptocurrency landscape evolves, the fallout from the Mantra crash highlights the need for investors to remain vigilant and informed. The question now is whether the Mantra team can recover from this setback and restore confidence in their project or if the OM token will join the ranks of failed cryptocurrencies.
