This Week in Crypto: Major Market Movements and Developments
Date: April 18, 2025
By: Lockridge Okoth
Updated by: Ann Maria Shibu
The cryptocurrency landscape witnessed considerable developments this week, marked by both promising partnerships and significant market turmoil. From the rise and fall of tokens to shifts in institutional investment, here’s a detailed look at the recent updates shaping the industry.
Mantra’s Collapse: A Cautionary Tale for Investors
Mantra’s OM token faced a catastrophic 90% decline this week, amidst grave allegations of insider trading and liquidity issues. Once celebrated as a superstar in the Real-World Assets (RWA) narrative, its dramatic drop has resulted in over $5.5 billion in losses for investors.
Concerns about concentrated wallet activities and inadequate liquidity pools have surfaced, rendering the OM token exceedingly susceptible to sudden market movements. Analysts have pointed to a particular trader who executed a significant short position, triggering a chain reaction of liquidations. This incident sheds light on the risks associated with investing in low-float, hyped tokens, especially in an illiquid market.
"This situation appears intentional," stated one analyst familiar with the trading dynamics. "The initial drop below $5 was initiated by a substantial market sell-off. In microseconds, over 5% slippage was observed, demonstrating how these high-risk tokens can be manipulated."
Pi Network: Initial Excitement Diminished by Concerns
The Pi Network’s native token, Pi Coin, initially experienced a notable surge following its integration with Chainlink, positioning it for greater real-world utility within the decentralized finance (DeFi) sector. However, this optimism has been tempered by criticisms surrounding the project’s transparency.
As market analysts compared Pi Coin to the recently failed OM token, skepticism grew. Concerns about unclear circulating supply, wallet distributions, and centralized control over the coin have raised red flags among potential investors. In just a few days, the token’s value fell 18%, settling at $0.6112, despite its recent gains.
Dr. Altcoin emphasized the importance of regulatory scrutiny, suggesting that the OM incident should serve as a crucial wake-up call for the entire industry. “As we transition from the Open Network to the Open Mainnet, lessons must be learned,” he remarked.
Grayscale’s Expansion into Altcoins
Amidst these developments, Grayscale Investments has been making waves in the altcoin space. The digital asset management firm revealed a list of 40 tokens under consideration for the second quarter of 2025, signaling a renewed institutional interest in emerging sectors of cryptocurrency.
This updated list features a variety of tokens across sectors such as decentralized physical infrastructure networks (DePIN), artificial intelligence (AI), modular blockchains, and restaking. Among the tokens being reviewed are SUI, STRK, TIA, JUP, and MANTA.
The move indicates Grayscale’s attempt to adapt to evolving market trends and capitalize on growing investor demand for diversified digital assets. However, it is important to note that inclusion in this review does not guarantee that a fund will be launched; it merely shows that Grayscale is actively conducting research on these assets.
Ripple and SWIFT: Addressing Speculation
In other news, rumors involving a potential partnership between Ripple’s XRP and the SWIFT banking network circulated this week, generating significant buzz among investors. These discussions were based on misinterpreted documents and social media posts that were misconstrued as confirmation of a collaboration.
Despite Ripple’s longstanding efforts to connect with traditional banking institutions and SWIFT’s openness to blockchain innovations, news platforms have clarified that no verified partnership currently exists. Nonetheless, these discussions have prompted reflection on XRP’s long-term potential, especially as it continues to be a top-ten asset with significant retail investor support.
Market Effects of a Weakening US Dollar
The US Dollar Index (DXY) saw a notable decline, hitting a three-year low this week. Historically, a weakness in the dollar has correlated with an uptick in Bitcoin prices, and this week was no different, with Bitcoin reclaiming the $84,000 mark.
The dollar’s downturn reflects rising concerns regarding fiscal stability in the United States, compounded by anticipated interest rate cuts and increasing Treasury debt. Increasing global money supply, particularly in Europe and Asia, could potentially inflame the conditions that led to earlier bullish cycles.
This macroeconomic environment may prove favorable for cryptocurrencies, as decreasing fiat liquidity and uncertainty in bond markets create conditions ripe for Bitcoin and other digital assets.
As the cryptocurrency market continues to evolve, staying informed on these trends and events will be crucial for both new and seasoned investors navigating this dynamic landscape.
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