In a shocking turn of events, the cryptocurrency market was rocked on April 13, 2025, when Mantra's OM token experienced a catastrophic flash crash, plummeting nearly 90% within hours. This incident has been described by many in the industry as the worst collapse since the infamous Luna and Terra debacles.
Initially trading at around $6.3, the token's price fell dramatically to as low as $0.37 before recovering slightly to about $0.5. The market capitalization of Mantra, which had been around $60 billion, saw over 90% evaporate in just a single day, leaving investors in a state of shock.
According to data from Binance, the OM token underwent a staggering decline, falling from $5.7 to $0.67 between 3:59 AM and 4:30 AM, and then further dropping to a low of $0.38 around 4:50 AM. As a result, the market capitalization shrank by over 90%, leading to widespread concern among investors.
Amidst the chaos, speculation about the cause of the crash has run rampant. Some analysts have suggested that the drop could be linked to a 'rug pull', where developers abandon a project after selling off their holdings. ZachXBT, a well-known cryptocurrency analyst, pointed out that the drop was not merely due to liquidation, raising suspicions about potential hacking or internal exploits.
In response to these allegations, the Mantra project team took to their official channels to clarify the situation. They stated, "Today's crash is unrelated to project operations and appears to have been caused by indiscriminate liquidation that created sudden selling pressure in the market." However, skepticism remains among the investor community, with many questioning how such a drastic drop could occur in such a short period.
Dustin McDaniel, a community leader within the Mantra project, echoed these sentiments, assuring investors that there was no internal selling from the team. He stated, "There was no internal manipulation from the team," while also noting that external access to their Telegram channel had been restricted following the incident.
Adding to the intrigue, it was revealed that prior to the crash, approximately 3.9 million OM tokens were deposited into the OKX exchange, which coincided with the onset of the rapid sell-off. This has led to further speculation about the possibility of a rug pull or market manipulation.
The Mantra project had recently been on an aggressive expansion path, having entered the Middle Eastern market and secured a virtual asset license from Dubai's VARA. This ambitious growth strategy made the sudden collapse all the more shocking for investors, who were optimistic about the future of the project.
Despite the turmoil, the Mantra team is reportedly continuing to operate and is currently investigating the circumstances surrounding the crash. They have promised to provide more detailed information as it becomes available.
As of April 14, 2025, the OM token was trading at approximately 1,476.48 KRW (about $1.04), reflecting a significant recovery from its lowest point but still far below its peak. The ongoing investigation and the market's reaction will be critical in determining the future of Mantra and its investors.
In the wake of this incident, the cryptocurrency community is watching closely. The fallout from this flash crash could have broader implications for the market, especially given the recent history of volatility and the need for greater regulatory oversight in the crypto space.
As the situation develops, investors are advised to remain vigilant and informed about the potential risks associated with cryptocurrency investments.
