Summary
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OM Token Suffers Drastic 90% Price Crash: MANTRA’s native token, OM, experienced a sudden and severe 90% price drop within four hours on April 13th, significantly reducing its market value and erasing gains made since early 2024.
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MANTRA Denies Token Dump, Blames Liquidations: The MANTRA team refuted allegations of internal token dumping, attributing the price crash to “reckless liquidations” on exchanges and stating they were not involved in triggering the sell-off.
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Co-founder Points to “Unprecedented” Forced Liquidation on Exchange: MANTRA’s co-founder, John Patrick Mullin, suggested that a “massive forced liquidation” event on an unnamed exchange over the weekend was the likely cause of the crash, and indicated an ongoing investigation into the exchange’s actions.
The price of OM, the token powering the MANTRA ecosystem, experienced a dramatic collapse, falling by as much as 90% within four hours.
This sudden downturn, as tracked on Binance data, resulted in the vaporization of billions from its market capitalization.
Rapid Price Decline Erases Recent Gains
OM’s valuation plummeted from over $6 to a low of $0.37 on April 13th, effectively wiping out nearly all the substantial gains it had accrued since its impressive surge from $0.0158 in January of 2024.
The token had previously reached a high of $9 earlier in the year, before this event.
At the time of this report, OM’s trading price had slightly recovered to above $0.6 but remained approximately 93% below its peak value.
Speculation Arises Regarding Cause of Crash
The exact cause of this precipitous drop remains unconfirmed but the initial speculation centered on the possibility of the project’s development team engaging in the selling of their token holdings, triggering the price collapse.
MANTRA Attributes Crash to Forced Liquidations, Denies Internal Sell-Off
MANTRA has formally denied any involvement in orchestrating the 90% crash of the OM token.
Instead, the team attributes the significant price decrease to “reckless liquidations” in the market.
Dustin McDaniel, the community lead for MANTRA, communicated on the project’s Telegram channel that the team is aware of and addressing community concerns and is formulating a formal response.
The project’s Telegram group is currently inaccessible to new members.
In their official statement, MANTRA asserted that the sell-off originated externally, not internally, and pledged to provide further details as soon as possible.
Co-founder Cites “Unprecedented” Forced Liquidation Event
Following OM’s collapse, MANTRA co-founder John Patrick Mullin addressed the situation in an X Spaces session, describing it as “unprecedented.”
Mullin pointed towards substantial forced liquidations occurring on an unnamed exchange as the likely catalyst.
“I woke up to this about 30 minutes ago,” Mullin stated, emphasizing the unexpected nature of the event.
He continued, “It’s honestly unprecedented and we’re still figuring out exactly what’s going on, but I can tell you, we’re still here and we’re going to sort it out.”
Investigation into Exchange Actions Underway
Mullin explained, “From my understanding, it seems like there was a massive forced liquidation on an exchange over the weekend.”
He added, “I won’t name the exchange yet, because we’re starting to get exactly why they did what they did.”
He elaborated that this exchange “took over several different positions and completely just closed them out,” and the team is actively investigating the justifications behind these actions.
MANTRA’s Position in Real-World Asset Tokenization
MANTRA operates as a prominent participant within the realm of real-world asset (RWA) tokenization.
The project has attracted attention and credibility through established collaborations with entities such as Google Cloud and Dubai’s DAMAC Group prior to this market event.
Also Read: Mantra and DAMAC Group Sign $1B Tokenized Asset Plan
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