The cryptocurrency market was rocked on April 13, 2025, when the native token of the MANTRA ecosystem, OM, plummeted by over 90% in a matter of hours, erasing billions in market capitalization. The price of OM dropped from $6.30 to below $0.50, a staggering decline that has left investors and analysts scrambling for answers.
According to John Mullin, co-founder of Mantra, the crash was triggered by what he described as "reckless forced closures" initiated by centralized exchanges. In a statement on X, Mullin expressed concern over the sudden market movements, stating, "The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice." He further noted that this occurred during low-liquidity hours, which raises questions about the negligence or potential intentional actions by the exchanges involved.
Despite the turmoil, Mullin has insisted that the Mantra team did not orchestrate a rug pull or have any outstanding loans that could have contributed to the crash. "The team did not have a loan outstanding and haven't orchestrated a rug pull," he clarified in follow-up posts. "Tokens remain locked and subject to the published vesting periods." This assertion aims to quell rampant speculation that the team might be responsible for the sudden drop in value.
In the days leading up to the crash, blockchain analytics platform Spot On Chain reported that several large holders, known as whales, moved 14.27 million OM tokens to the OKX exchange just three days prior to the market collapse. This has led to further speculation about whether these moves contributed to the sharp decline in the token's price.
Adding to the confusion, some traders have alleged that the token's collapse was a result of the team dumping their holdings. This claim has been fueled by reports that the MANTRA team controls a significant portion of the total supply of OM tokens. However, Mullin and the Mantra team have vehemently denied these allegations, asserting that they are committed to transparency and accountability.
The price of OM briefly rebounded to above $1 after the initial crash but has since settled around $0.7894, according to CoinGecko. This marks a significant drop of over 91% from its all-time high of just under $9, reached on February 23, 2025. The sudden volatility in the token's price has drawn comparisons to the infamous LUNA crash of 2022, prompting concerns about the integrity of the MANTRA project.
In a Telegram message, Dustin McDaniel, MANTRA’s community lead, acknowledged the community's concerns and assured them that the team was working on a response. The project's Telegram group is currently closed to new members, which has raised eyebrows among investors seeking clarity.
As the fallout from the crash continues, analysts are closely monitoring the trading volume of OM, which surged from $70 million to nearly $700 million amid the chaos. Such a spike typically indicates heightened interest, but in this case, it reflects increasing selling pressure as investors scramble to exit their positions.
On-chain data indicates that the volatility surrounding the OM token has reached unprecedented levels, with the Relative Strength Index (RSI) dropping below 30.00, signaling oversold conditions. If the selling pressure persists, analysts warn that OM's price could fall further, potentially reaching as low as $0.38.
In the wake of the crash, some analysts have speculated that the decline might be linked to a forced liquidation involving a large holder on a centralized exchange. Mullin stated, "I literally woke up about 30 minutes ago into this. It’s honestly unprecedented and we’re still figuring out exactly what’s going on." He emphasized that the team is committed to resolving the situation and providing more information as it becomes available.
Meanwhile, the MANTRA project had recently made headlines for launching a $108 million fund aimed at supporting real-world asset (RWA) tokenization initiatives. This ambitious project had positioned MANTRA as a key player in the blockchain space, attracting partnerships with notable entities such as Google Cloud and Dubai’s DAMAC Group.
Despite the promising developments, the recent crash has cast a shadow over the future of the project. Investors are left questioning the stability and reliability of the MANTRA ecosystem, particularly in light of the allegations of market manipulation and the lack of clear communication from the team.
The situation remains fluid, with many in the crypto community urging the MANTRA team to provide transparency and clarity regarding the events leading up to the crash. As the team works to address the concerns of its community, the future of the OM token hangs in the balance, with many investors left wondering if this is the end of a once-promising project.
In summary, the sudden collapse of the OM token has raised significant questions about the integrity of the MANTRA project and the broader cryptocurrency market. As investigations continue and more information comes to light, the crypto community will be watching closely to see how the situation unfolds.
