- MANTRA’s OM token crashed 90% in four hours, erasing $5 billion in market cap amid rumors of insider trading.
- CEO Mullin is burning $236 million in tokens to restore trust, drawing hopes of a potential recovery similar to Solana and LUNA.
MANTRA’s OM token has been at the center of a dramatic turn of events, experiencing an unprecedented crash that saw its value plummet by 90% in just four hours. This sudden drop wiped out a staggering $5 billion in market cap, and within hours, rumors of a potential rug pull began to circulate. However, these allegations were quickly denied by the project’s CEO, John Patrick Mullin, who pointed to “reckless forced closures led by centralized exchanges” as the main culprit.
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The timeline leading up to the collapse raised further suspicions. On-chain data revealed that 43.6 million OM tokens, worth around $227 million, were transferred to Binance and OKX in the days preceding the crash. Two of these addresses were connected to Laser Digital, a strategic investor in Mantra. This sparked rumors of insider trading and market manipulation, though both Laser Digital and the exchanges involved have strongly denied any wrongdoing.
Despite these unsettling revelations, CEO Mullin remains optimistic about OM’s future. To restore trust and demonstrate commitment to the community, he announced a burn of $236 million in mantra tokens, originally allocated to the core team. This move is designed to reduce the total supply of the token and create more value for holders.
Crypto exchanges, including Binance, have labeled the crash an incident stemming from cross-exchange liquidations, while some analysts have dubbed it a “scandal.” Despite the negative press, comparisons to past crypto recoveries are being drawn. For instance, Solana (SOL) and LUNA both experienced massive crashes, only to rise from the ashes. Solana’s market cap grew by 15 times after dropping to $9 post-FTX, while LUNA’s rise was even more dramatic.
While OM’s journey is still uncertain, the recent token burn and the potential for a recovery reminiscent of Solana and LUNA have sparked hopes among investors. With a long road ahead, OM’s potential to bounce back remains intriguing, offering a unique opportunity for those willing to navigate the risk. Will it follow in the footsteps of these historic recoveries? Time will tell.
