Mantra's OM Token Crashes 90% in Hour, Erasing $5.4 Billion
1min read Mantra's om token experienced a dramatic 90% crash within an hour early Monday, plummeting from over $6 to 37 cents. This sudden drop erased $5.4 billion in market capitalization, leaving investors devastated. The Mantra team attributed the crash to "reckless liquidations" by exchanges during low-liquidity hours, asserting that their tokens remained locked and verifiable on-chain. However, community trust was shaken as investors expressed their devastation on social media, with some claiming significant losses. Critics accused Mantra and Binance of a "liquidity exit" and threatened legal action, while Mantra's Telegram group was closed to new users.
Prior to the crash, at least 17 wallets deposited 43.6 million OM tokens, worth $227 million at the time, into exchanges like OKX and Binance. Two of these addresses were linked to Laser Digital, a strategic investor in Mantra. This raised suspicions of insider selling or manipulation. The incident may impact credibility in the real-world asset (RWA) sector, as major players like UAE real estate giant DAMAC remain wary of projects with volatile token prices.
Investors expressed their devastation on social media, with users such as @Jeetburner claiming to have lost over $3.5 million. Critics accused Mantra and Binance of a "liquidity exit" and threatened legal action, while Mantra’s Telegram group closed to new users. The incident may impact credibility in the RWA sector as real-world bigwigs - such as UAE real estate giant DAMAC, in Mantra's case - keep wary of projects with volatile token prices.
In response to the crash, OKX's CEO Star Xu called the OM token collapse a major scandal for the entire crypto industry, stressing that all on-chain data is publicly available for scrutiny across major exchanges. The Mantra team denied involvement, attributing the crash to "reckless liquidations" by exchanges during low-liquidity hours, claiming their tokens remain locked and verifiable on-chain, though community trust is shaken.
The incident highlights the risks and volatility inherent in the crypto market, where sudden price movements can lead to significant losses for investors. It also underscores the importance of transparency and accountability in the industry, as well as the need for robust regulatory frameworks to protect investors from fraud and manipulation.
