Mantra’s OM token suffered a dramatic collapse on Monday, plummeting over 90% from $7 to approximately $0.40 in a matter of hours.
A sharp sell-off in Mantra’s OM token on Monday triggered significant volatility in the crypto markets, as the token plunged over 90% within hours, falling from $7 to approximately $0.40.
The dramatic drop, which unfolded without a clear external catalyst, drew comparisons to the 2022 collapse of Terra’s LUNA and has raised concerns about insider activity, low liquidity, and investor trust.
Mantra’s OM Token Plunges 90% Amid Market Chaos
The price collapse began late Sunday following on-chain data that showed a wallet linked to the Mantra team transferring 3.9 million OM tokens to the OKX exchange. Given Mantra’s reported control of up to 90% of OM’s total supply, the move intensified fears of insider-led token dumping. The token has yet to regain its previous support at $0.70 at the time of reporting.
Mantra’s OM token, which serves as the governance and utility token for the platform’s real-world asset (RWA) tokenization infrastructure, suffered the bulk of its decline during a low-liquidity weekend trading window.
Analysts suggest the steep losses were accelerated by over-the-counter (OTC) traders offloading discounted tokens, which triggered stop-losses and liquidations of leveraged positions, creating a rapid cascade effect.
Prominent analysts such as Sjuul from AltCryptoGems highlighted persistent concerns within the community regarding transparency and governance. Accusations include allegations of token allocation changes, failure to deliver airdrops, and deep-discount OTC token sales—some reportedly offered at up to 50% below market value.
Insider Activity Spark Panic Selling, Is It True?
In response to the market fallout, Mantra co-founder John Patrick Mullin denied claims of insider trading and emphasized that team-held tokens had not been moved. Mullin attributed the collapse to what he called “reckless forced closures” by centralized exchanges, which he said liquidated large OM positions without warning. He also rejected rumors that the Mantra team had deleted community Telegram channels, stating that operations were continuing as usual.
Blockchain data revealed that since April 7, more than 43 million OM tokens—worth around $227 million at the time—had been transferred to centralized exchanges. Two wallets involved in the activity were identified as belonging to Laser Digital, a known strategic backer of Mantra DAO.
Despite the recent downturn, Mantra had entered 2024 with strong momentum. In January, it announced a $1 billion real-world asset tokenization partnership with UAE-based DAMAC Group. In February, Mantra secured a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling it to offer brokerage, exchange, and advisory services within the UAE.
The situation remains fluid as the project faces scrutiny from both its community and external observers. Further on-chain investigation and regulatory clarity may determine the longer-term implications of the event.
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