OM Token Crashes 90% as Insider Transactions Spark Sell-Off

The OM token from MANTRA DAO experienced a dramatic crash, losing over 90% of its value early Monday. This sudden decline wiped out approximately $5.36 billion in market value. On-chain data suggests that insider transactions may have played a significant role in this free fall. Specifically, just five hours before the crash, a wallet that had been dormant for over a year transferred 2 million OM tokens, then valued at $12.58 million, to another wallet potentially linked to a venture capitalist. This venture capitalist has previously promoted MANTRA, but there is no concrete evidence of wrongdoing on his part.

The crash was not an isolated event. Data from a crypto intelligence platform revealed that 17 wallets offloaded 43.6 million OM tokens, valued at roughly $227 million and about 4.7% of the circulating supply, just before the crash. Two of these wallets were reportedly tied to a strategic investor in MANTRA Chain. This large-scale offloading of tokens raised suspicions of insider selling and market manipulation.

The MANTRA DAO team attributed the crash to "reckless forced closures" by centralized exchanges during low-liquidity Sunday evening trading. However, many in the crypto community remain unconvinced by this explanation. The founder of MANTRA DAO insisted that there was no rug pull, instead calling for better oversight of exchange practices that "can hurt projects and investors alike." Executives at exchanges have hinted that insider selling may have triggered the sell-off, challenging MANTRA’s explanation.

This is not the first time MANTRA DAO has faced scrutiny. In 2021, concerns were raised about the project’s ties to a gambling platform and its misleading investment claims from a now-defunct exchange. The sell-off has further worsened OM’s price trajectory, as the token was already navigating a volatile market. At the time of the crash, OM was trading at $0.72, plunging 88% in the last 24 hours. The token’s market cap stood at $6.06 billion before crashing to $710 million.

The allegations of insider trading and market manipulation have sparked a blame game within the crypto community. While the MANTRA DAO team denies any wrongdoing, the community's skepticism persists. The incident highlights the need for greater transparency and regulation in the crypto market to prevent such dramatic crashes and protect investors from potential insider trading and market manipulation.