MANTRA's Token Rebounds 27% After 90% Crash
1min read MANTRA’s native token experienced a significant rebound on Tuesday after a sudden crash over the weekend that wiped out over 90% of its value. The token, which was trading above $6.30 on Sunday, plummeted to around $0.52 within hours. By Tuesday afternoon, prices had recovered to approximately $0.82, marking a more than 50% increase earlier in the day before settling around a 27% gain at press time. As of the latest update, MANTRA is trading at $0.7672.
The abrupt decline sparked widespread speculation within the digital asset community. MANTRA attributed the issue to large-scale forced liquidations, asserting that these actions were unrelated to the project’s performance or internal operations. No external hack or technical failure has been confirmed.
In response to the crisis, MANTRA’s co-founder John Patrick Mullin announced that a detailed report would be released to explain the events. “We are preparing a full breakdown of what happened starting early Monday morning in Asia. The data will tell the full story—on-chain and off-chain,” Mullin stated in a post. He also mentioned upcoming measures aimed at rebuilding trust, including a token buyback and a reduction in supply to help stabilize the project and move forward with a long-term plan. However, no timeline or amount was shared regarding these proposed actions.
Amid the market uncertainty, previous allegations about MANTRA’s token supply resurfaced. Critics have accused the team of holding too much of the token’s float, which may have made the market more fragile during price swings. Mullin addressed these concerns directly, stating, “We do not manipulate the price, and we’ve been transparent about how the token is structured.”
Nomura’s Laser Digital, an investor in MANTRA since 2024, released a statement refuting claims that early backers triggered the drop. “There have been no large withdrawals or coordinated sales from our side,” the company said, adding that its position in the project remains unchanged.
The collapse has led to broader questions within the decentralized finance community. Jean Rausis, co-founder of SMARDEX, highlighted how vulnerable some new blockchain projects can be. “This is a reminder that projects launched with aggressive marketing and no history are often the most fragile when pressure hits,” he said. Rausis compared MANTRA’s issues to the steadier track record of Ethereum, noting that “Ethereum isn’t moving fast in price, but it’s still the backbone of real development in this space. It’s not just about speed or hype—it’s about lasting value.”
The MANTRA team has yet to publish the promised report. Until more information is released, market participants remain cautious. The situation underscores the volatility and risks associated with new blockchain projects, emphasizing the importance of transparency and stability in the digital asset space.
