The MANTRA (OM) token suffered a catastrophic price collapse on April 13, plummeting over 90% in under an hour and wiping out more than $5.5 billion in market capitalization.
The sudden crash, which took OM from a high of $6.33 to below $0.50, has drawn comparisons to the infamous Terra LUNA meltdown, with thousands of holders reportedly losing millions.
Why did MANTRA (OM) Crash?
Multiple reports suggest that the trigger is a large token deposit linked to a wallet allegedly associated with the MANTRA team. Onchain data shows a deposit of 3.9 million OM tokens to OKX, sparking concerns about a possible incoming sell-off.
Given that the MANTRA team reportedly controls close to 90% of the token’s total supply, the move raised immediate red flags about potential insider activity and price manipulation.
The OM community has long expressed concerns around transparency. Allegations have surfaced over the past year suggesting the team manipulated the token’s price through market makers, changed tokenomics, and repeatedly delayed a community airdrop.
When the OKX deposit was spotted, fears that insiders might be preparing to offload were amplified.
Reports also indicate that MANTRA may have engaged in undisclosed over-the-counter (OTC) deals, selling tokens at steep discounts — in some cases at 50% below market value.
As OM’s price rapidly declined, these OTC investors were thrown into losses, which allegedly sparked a mass exodus as panic selling took hold. The chain reaction triggered stop-loss orders and forced liquidations on leveraged positions, compounding the collapse.
The MANTRA team has denied all allegations of a rug pull and maintains that its members did not initiate the sell-off.
In a public statement, co-founder John Patrick Mullin said the team is investigating what went wrong and is committed to finding a resolution.
The project’s official Telegram channel was locked during the fallout, which added to community frustration and speculation.
“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders. The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice,” wrote MANTRA founder JP Mullin.
If OM fails to recover, this would mark one of the largest collapses in crypto history since the Terra LUNA crash in 2022.
Thousands of affected holders are now demanding transparency and accountability from the MANTRA team, while the broader crypto community watches closely for answers.
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