The OM token, part of the Mantra ecosystem, experienced a price crash. Its value plummeted by over 92% in just six hours, sparking speculation and concern within the crypto community. The token dropped from $6.40 to $0.57 and wiped out $6B in market cap in a single day.
The fall of the OM token has spurred debate regarding its causes. Mantra’s co-founder, John Patrick Mullin, attributes the collapse to “reckless forced closures” by centralized exchanges, highlighting that these measures occurred without prior warning during low-liquidity hours.
On the other hand, arket speculation suggests a potential “rug pull” or insider selling, given the team’s control of over 90% of the token supply. Even with these claims, Mullin denies any involvement by the team or investors, stating that the tokens remain locked according to vesting schedules. This shows the possible risks of centralized exchange practices and market manipulation.
MANTRA (OM) On-chain Activity and Market Movements
On-chain activities played a major role in the OM token crash. An influx of 3.9 million OM tokens on OKX, possibly linked to the Mantra team, triggered panic selling. Analytics revealed that 17 accounts put 43.6 million OM tokens onto exchanges before the crisis, significantly increasing market instability.
The unexpected flood of MANTRA tokens onto exchanges like OKX and Binance led to a liquidity crisis, producing a cascading effect of liquidations that pushed the price to its breaking point. This fast sell-off emphasized the risks of centralized exchange procedures and highlighted the importance of transparency in token management.
Community Outrage and Social Media Withdrawal
The community reacted with suspicion and fury following the OM token crash. Mantra’s social media sites were erased, igniting concerns about transparency. With many questioning the team’s complicity in the catastrophe, investors expressed dissatisfaction about the lack of transparency. The unexpected disappearance of official channels heightened doubts, leading to a loss of trust in the initiative.
The OM token crisis has sent ripples across the crypto market, revealing systemic flaws. Derivatives trading jumped 7,000%, reaching $6 billion within 24 hours as speculative traders capitalized on the panic. However, liquidations exceeded $76 million, highlighting the possibility of excessive volatility. Doubts remain high as investors question its long-term viability.
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