OM Token of MANTRA Plummets by 90%, Billions Lost Within Hours

MANTRA’s OM token experienced a significant crash of more than 90% on April 13, resulting in the loss of over US$6B in market value. This plunge, from a value of US$6.3 (AU$10) to under US$0.50 (AU$0.80), sent shockwaves through the cryptocurrency community, reminiscent of previous rug-pulls in the industry.

Addressing the concerns, Dustin McDaniel, MANTRA’s community lead, reassured users that the team is actively investigating the situation following “reckless liquidations” that led to the drastic decline in the token’s value. The team emphasized that the fundamental strength of the project remains intact despite the market turmoil.

Co-founder John Patrick Mullin attributed the chaos to a “massive forced liquidation from a large OM investor on a CEX”, although the exact exchange was left unspecified. This explanation, however, did little to assuage the doubts within the community, with many questioning the validity of the narrative provided by the team.

Furthermore, concerns have been raised regarding the level of control insiders hold over MANTRA’s circulating token supply, with reports indicating that the team may possess a substantial portion of the supply. These allegations add another layer of scrutiny to the project, especially in light of previous legal issues related to misappropriation of assets.

The timing of the crash is particularly unfortunate for MANTRA, given its recent high-profile partnerships and licensing agreements. Earlier in the year, the project announced a US$1B tokenization deal with DAMAC, a prominent Dubai-based investment firm, aimed at bringing physical assets onto the blockchain. In addition, MANTRA secured a virtual asset service provider license from VARA in Dubai, expanding its regulated services in the UAE.

As the aftermath of the crash unfolds, the community awaits a comprehensive post-mortem to shed light on the root causes of the plunge. With uncertainty looming over the token’s future and recovery strategies yet to be outlined, MANTRA’s OM token joins the ranks of other digital assets that have faced a similar fate in the volatile cryptocurrency market. Despite the challenges, the team remains committed to addressing the concerns and restoring confidence among stakeholders in the project’s viability.