OM Crypto Implodes: MANTRA Crypto Crash Triggered By Liquidation Panic

By Alex Ioannou
Last Updated: April 14, 2025
Fact-checked by Sam Cooling

Overview of the Crash

The cryptocurrency market has been rocked by the unprecedented collapse of the MANTRA crypto, which saw its native token, OM, plunge an astonishing 90% in a single day. This dramatic decline has overwhelmed traders and investors alike, raising concerns over the future of both the token and the broader Mantra ecosystem.

On a tumultuous Sunday for the cryptocurrency, OM’s price plummeted from $6.30 to under $0.50, resulting in the loss of over $5.5 billion in market capitalization. The event has triggered panic among investors and widespread speculation regarding the reasons behind such a steep decline.

What Caused the MANTRA Crypto Crash?

The primary catalyst for this crash has been identified as a “massive forced liquidation” on a centralized exchange. According to John Patrick Mullin, co-founder of Mantra, a single large investor initiated a series of cascading sell orders, leading to a drastic drop in OM’s price. “Guys let’s get a couple of things straight: This wasn’t team selling,” Mullin stated in a post on X (formerly Twitter). “We’re still here. Still building. Still fixing this.”

However, the abrupt closure of Mantra’s public Telegram group shortly after the crash has added to the speculation of internal disarray within the project. Community lead Dustin McDaniel attempted to reassure members, stating he had “no knowledge” of the cause pending an internal review.

Despite these reassurances, comparisons have been drawn to other notable market collapses, such as the Terra LUNA implosion and the fallout from the FTX scandal. Traders and industry analysts have pinpointed long-standing concerns surrounding the tokenomics of OM, particularly its heavily inflated fully diluted valuation nearing $9.5 billion, compared to a total value locked (TVL) of only $13 million.

In the days leading up to the crash, on-chain data indicates that millions of OM tokens were moved to leading centralized exchanges like OKX and Binance. It was reported that one address associated with Binance transferred over $36 million in OM to the OKX exchange, leading to speculation that these moves may have been strategically timed before the collapse.

Future of MANTRA Crypto and OM Token

As the dust settles, questions loom over the future of both the OM token and the Mantra DAO. Reports have emerged that Burwick Law is currently investigating the developments surrounding Mantra and its token following the drastic price drop. Their inquiry covers aspects such as tokenomics, significant transfers, and liquidity concerns, signaling looming legal scrutiny for those involved.

Moreover, the situation coincides with ongoing legal challenges for the Mantra DAO. A Hong Kong court has mandated that six members disclose their financial records in an ongoing lawsuit regarding misappropriation of DAO funds, further complicating the trustworthiness of Mantra’s governance and financial integrity.

Just a couple of months prior, the Mantra project had appeared to be thriving with the acquisition of a virtual asset license from Dubai’s VARA and a significant $1 billion tokenization deal with real estate developer DAMAC. However, the recent upheaval has left investor confidence in tatters, with key aspects of the project’s infrastructure rendered offline and its future now uncertain.

Community Sentiment and Looking Forward

With OM holders feeling the weight of despair from the crash, new projects are emerging, such as the Mind Of Pepe (MIND) AI agent crypto. This platform aims to capitalize on the burgeoning interest in AI-driven financial technology and offers features designed to protect and enhance users’ investments.

As the market grapples with the ramifications of the MANTRA crash, the larger question remains: will OM token be able to rebound from this catastrophic implosion, or is this a prelude to the end for yet another over-leveraged project? With many investors left watching closely, the outcome will shape discussions within the cryptocurrency community in the coming weeks.

For those interested in the volatile nature of cryptocurrency, staying informed and cautious remains more crucial than ever.

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