Mantra's OM Token Plummets 94% After $227M Transfer to Exchanges

On April 7th, blockchain intelligence platform Lookonchain reported that a significant amount of OM tokens, valued at $227 million, were transferred to various crypto exchanges prior to a substantial price collapse of the real-world asset (RWA) crypto project Mantra. The transfers, which involved multiple wallets, were made before Mantra's price plummeted by 90% over the weekend. According to Lookonchain, some of the exchanges that received these deposits included OKX and Binance. The data indicated that at least 17 wallets deposited 43.6 million OM tokens, which constituted 4.5% of the circulating supply.

On Sunday, Mantra witnessed a sudden price meltdown, dropping from a high of $6.35 to a low of $0.37 – a whopping decline of 94% in just one day. Simultaneously, its market cap plunged from $6.11 billion to $683.3 million. This dramatic shift in value raised questions about the involvement of major investors and the role of crypto exchanges in the price collapse.

Crypto asset management firm Laser Digital, which is a strategic investor in Mantra, issued a statement denying any involvement in the price collapse. The firm clarified that assertions linking it to 'investor selling' were factually incorrect and misleading. Laser Digital emphasized that it had not deposited any OM tokens to OKX, and the wallets referenced in the transactions were not associated with the firm.

Mantra CEO JP Mullin attributed the sudden price collapse to the actions of crypto exchanges, suggesting that these firms closed large positions during low-liquidity hours, exacerbating the market downturn. At the time of reporting, the OM token was trading at $0.595, reflecting a 32.5% decrease in value over the past day.

The incident highlights the volatility and risks associated with the crypto market, where large-scale token transfers and exchange activities can significantly impact asset prices. The situation underscores the need for transparency and accountability in the crypto ecosystem, as well as the importance of regulatory oversight to prevent market manipulation and ensure investor protection.