Mantra Token Plummets 80% Amid Community Rug Pull Fears
2min read The Mantra team has addressed the crypto community following the Mantra (OM) token price crash of over 80% in the last 24 hours. Despite the statement, the community is still concerned that this might have been a rug pull by the team, which controls a huge amount of the token’s total supply.
The Mantra team assured the community that the token is “fundamentally strong” despite the crash that occurred in the last 24 hours. The team blamed the crash on “reckless liquidations” and denied it had anything to do with the project. They further assured that this had nothing to do with the team and revealed that they were looking into the Mantra price crash and would share more details about what happened as soon as possible.
In a post, the project’s co-founder, John Patrick Mullin, revealed that there was a massive forced liquidation from a large OM investor on a Centralized Exchange (CEX). However, he didn’t reveal whether it was one of the top crypto exchanges. In another post, Mullin tried to set the record straight. He stated that they didn’t delete the Telegram channel. He further remarked that the team’s tokens all remain in custody and provided a wallet address for community members to verify this claim. The Mantra co-founder added that they are actively figuring out why these massive forced liquidations occurred and will provide more information as soon as possible. He assured that they are still here and not going anywhere.
The OM token's price initially dropped from an intra-day high of $6.3 to as low as $0.4 before recovering to the $1 price level following the team's statement. However, skepticism remains among some community members, who point to the significant selling pressure caused by a wallet believed to be connected to the team depositing 3.9 million OM tokens to the OKX crypto exchange. This deposit is seen as a potential trigger for the crash, leading to comparisons with the LUNA token's collapse.
Despite the team's assurances, some community members still seem convinced that this was a rug pull, as the team controls a huge amount of the token’s supply. Crypto commentator Sjuul described the OM token as the LUNA of this cycle. He further explained why the community believes the crash was a rug pull, stating that the crash began when a wallet believed to be connected to the team suddenly deposited 3.9 million OM tokens to the OKX crypto exchange. This deposit led to significant selling pressure, which caused the Mantra price to crash.
In summary, the Mantra team has responded to the significant crash in the OM token price, which plummeted by over 80% within a 24-hour period. The team attributed the sudden drop to "reckless liquidations" and assured the community that the token remains fundamentally strong. Despite their assurances, concerns persist within the community, with some members speculating that the crash could be a rug pull, given the team's control over a substantial portion of the token's supply. The team's ongoing investigation and updates are crucial in rebuilding trust and stability within the Mantra ecosystem.
