OM Token Crashes 90% in 24 Hours, Wiping Out $68M

Mantra's OM token experienced a dramatic crash, plummeting over 90% in just 24 hours. This sudden decline wiped out approximately $68 million in value, leaving investors in shock and raising questions about the stability of the crypto market.

Co-founder JP Mullin attributed the crash to "reckless" liquidations, denying any wrongdoing on the part of the Mantra team. However, investors remain skeptical, with many calling the event a "live rug pull." The rapid decline in OM's value has triggered a chain reaction of margin calls and liquidations, affecting other tokens like Solana and even joke coins like Fartcoin.

The chaos began with a significant deposit of 3.9 million OM tokens from a possible team wallet to OKX. With nearly 90% of the supply allegedly controlled by the team, and a history of market manipulation and delayed airdrops, panic selling quickly escalated. As OTC buyers went underwater, a wave of exits may have triggered cascading liquidations.

Mullin defended the project, blaming "reckless forced closures" by centralized exchanges during low-liquidity hours. He insisted that tokens remain locked under vesting schedules and claimed that the team, investors, and advisors did not sell. However, traders are not convinced. Accusations of manipulation flooded social media platforms, with prominent market watchers comparing the collapse to previous disasters like LUNA and FTX.

One user called OM "one of the biggest scams I have ever seen in crypto," accusing the team of OTC dumping and demanding that the team be held accountable. Screenshots online claimed that 90% of OM’s supply was dumped, and Mantra deleted its Telegram, fueling exit scam fears. One post even branded the situation as "Welcome to Terra Luna V.2."

Market commentator Miles Deutscher called the OM crash a textbook case of inflated valuations, stressing that liquidity matters more than market cap. He noted that the chart didn’t look normal for some time, pointing to a broader issue of prices diverging from fundamentals. As trust in OM fades, he sees potential for capital to rotate into more credible RWA protocols.

This event is the latest in a series of cautionary tales in the crypto world, from Terra Luna’s catastrophic crash in 2022 to the criminal downfall of FTX. Whether it’s a deliberate scam or genuine market dislocation, the crypto market is unforgiving and swift in its judgment. The Mantra collapse serves as a reminder of the risks and volatility inherent in the crypto space, and the importance of due diligence and caution for investors.