Token's Value Plummets by 90%: Mantra (OM) Team Attributing Sell-off to Exchange Liquidations

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MANTRA's OM Token Plummets: A Tale of Centralized Exchanges and Market Volatility

Token's Value Plummets by 90%: Mantra (OM) Team Attributing Sell-off to Exchange Liquidations

Here's a series of jaw-dropping events that occurred on April 13, 2025. In a breathtaking turn of events, MANTRA's native token OM experienced a catastrophic collapse, plummeting by a staggering 90%, moving from $6.30 to below $0.50. As a result, an astonishing $5 billion in market capitalization vanished in thin air, sparking widespread speculation about the reasons behind this seismic shift.

The meltdown happened during unconventional trading hours - Sunday evening UTC and early morning Asia time. It took approximately 90 minutes for OM to plummet from its once-lofty heights to the depths below $0.50, as per market data.

MANTRA co-founder John Patrick Mullin was quick to address the situation on the social media platform X. He confidently stated, "We've pinpointed the OM market movements to be the consequence of reckless forced closures initiated by centralized exchanges on OM account holders."

The timing of the crash raises many questions. Mullin alleged that "a sudden, abrupt closure of account positions was instigated without any forewarning or notice" by these exchanges. He further suggested that this careless action, at best, showcases negligence, or, more concerningly, could be indicative of deliberate market positioning by centralized exchanges.

Trading Activity Before the Crash

Blockchain analytics platform, Lookonchain, has uncovered unusual token movements in the days leading up to the catastrophe. At least 17 wallets deposited 43.6 million OM tokens into crypto exchanges starting April 7, making up 4.5% of the total circulating supply.

Spot On Chain, another equally renowned blockchain analytics platform, reported that some large OM holders moved 14.27 million tokens to the crypto exchange OKX three days before the crash. These same holders had purchased a staggering 84.15 million OM for a whopping $564.7 million in March.

The financial impact on these holders appears to be devastating. After the 90% price drop, their remaining 69.08 million OM tokens were worth a mere $62.2 million. This suggests potential losses of a staggering $406.3 million. However, the analytics firm cautions that these investors might have hedged their positions elsewhere.

OKX founder Star Xu commented on social media, "This is a significant scandal for the entire crypto industry. All on-chain unlock and deposit data is public, allowing all major exchanges' collateral and liquidation data to be scrutinized. OKX is fully committed to making thorough reports available."

Market Response and Trading Data

The market's reaction was swift and brutal. OM-tracked futures recorded over $50 million in liquidations from long positions - a mind-boggling record figure for the token. Open interest in OM futures contracts dropped precipitously from $345 million to a mere $130 million, signaling a rapid exit by traders.

Following the initial crash, OM briefly recovered above $1, but soon dropped again to trade around $0.78, according to CoinGecko data. The token reached an all-time high of just under $9 on February 23, and now stands a disheartening 91% below that peak.

Some members of the community have voiced doubts about the token's fundamentals. Critics pointed to MANTRA's total value locked (TVL) of a paltry $13 million compared to the token's fully-diluted value of $9.5 billion before the crash, viewing this disparity as a potential red flag.

Company Response

In response to the market chaos, MANTRA has moved to quell apprehensions. The team posted on X, "Let us reassure you, MANTRA remains robust. Today's activity was fomented by reckless liquidations, not anything related to the project itself."

Mullin swiftly dismissed theories suggesting the crash was due to team selling or a so-called "rug pull." He clarified that "the tokens remain latched, adhering to the published vesting periods. OM's tokenomics remain unaltered, as we detailed in our latest token report released a short while ago."

The project announced a community call on X, where more information would be shared. The team is still actively attempting to determine which specific exchange might have been responsible for the situation.

MANTRA made its entry in 2020, quickly establishing itself in the real-world asset (RWA) tokenization space. In January 2025, MANTRA and investment conglomerate DAMAC signed a colossal $1 billion deal to tokenize various assets such as real estate and data centers. The project also acquired a Virtual Asset Service Provider license from Dubai's regulatory authority in February.

The OM token crash serves as a sobering reminder of the volatility that can engulf even well-established cryptocurrency projects during periods of low liquidity trading, when towering sell orders can exert significant market influence.

1. The meltdown of MANTRA's OM token, despite its strong presence in the real-world asset tokenization space and recent partnerships with firms like DAMAC, underscores the potential risks of investing in cryptocurrencies, highlighting their volatile nature and the significant influence that large sell orders can have, even for established projects.
2. Amidst the claims of reckless forced closures by centralized exchanges on OM account holders, the National Stock Exchange of India (NSE), known for its role in traditional finance, might consider delving into the decentralized world of cryptocurrency, as technological advancements drive the convergence of traditional finance and digital assets, potentially offering a platform for safe and secure crypto trading.

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