- Mantra claims a sudden 90% crash of its OM token was triggered by forced liquidations from a centralized exchange during low-liquidity hours.
- Blockchain data shows over 43 million OM tokens were moved to exchanges prior to the collapse, fueling speculation of coordinated sell-offs.
The world of cryptocurrency witnessed a dramatic drop in the price of Mantra’s native token, OM, which saw a staggering 90% fall in just 24 hours. The coin, which was once trading above $6, plummeted to under $0.50, erasing over $6 billion in market cap. In the aftermath, accusations have surfaced, with the blockchain platform Lookonchain suggesting that a significant number of OM tokens were moved into crypto exchanges, potentially setting the stage for the crash.
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According to John Mullin, co-founder of Mantra, the abrupt downfall was triggered by centralized exchanges that allegedly closed positions without any prior warning. This event, which occurred during low-liquidity hours, is seen by some as negligent, or possibly worse, as part of a deliberate market manipulation strategy. Mullin hinted at one exchange in particular being the main culprit, but refrained from naming it, though he confirmed that Binance was not involved.
Blockchain analysis also paints a concerning picture. Platforms like Spot On Chain and Lookonchain tracked large OM transfers to exchanges, with 17 wallets moving a collective 43.6 million OM tokens into exchanges starting on April 7, which represented a significant portion—around 4.5%—of OM’s circulating supply. This sudden surge in market activity could have contributed to the sharp drop in value.
Some traders speculate that the collapse might have been the result of internal mismanagement, including theories of a loan risk parameter change causing a margin call, or even a potential rug pull. However, Mullin has strongly denied these rumors, stating that the team had no outstanding loans and that the tokenomics remained unchanged.
The sudden crash left many in the crypto space questioning the security of centralized exchanges and the power they hold over market fluctuations. Despite the aftermath, OM managed a slight recovery, briefly crossing $1 before stabilizing at around $0.79. However, it remains a stark reminder of the risks involved in crypto trading, where a single event can wipe out billions in value.
This incident sheds light on the vulnerabilities of crypto markets, the role of exchanges, and the unpredictable nature of blockchain assets in the face of sudden and unanticipated shifts in market behavior.
