OM Token Plummets 90% in Hour, $6 Billion Lost

The cryptocurrency market experienced a significant shock on April 13, 2025, as the OM token, associated with the MANTRA project, plummeted by over 90% within an hour. This dramatic decline resulted in the loss of more than $6 billion in value, leaving investors reeling from the sudden collapse. The event has been compared to the infamous LUNA crash, raising questions about the integrity and transparency of the MANTRA project.

According to crypto analysts Sjuul from AltCryptoGems and StarPlatinum, the crash was triggered by a series of concerning events. A wallet linked to the MANTRA team deposited 3.9 million OM tokens onto the OKX exchange, raising immediate concerns. The MANTRA team is known to control nearly 90% of the token’s total supply, making any significant sell-off potentially catastrophic. This move sparked fears of an impending sell-off, which materialized shortly after.

Sjuul highlighted that trust within the OM community had already been eroded over the past year due to allegations of market manipulation, secret alterations to tokenomics, and repeated delays in a promised community airdrop. These actions had put the community on edge, and the recent events only exacerbated their concerns. Additionally, rumors of over-the-counter (OTC) deals, where tokens were reportedly offered at massive discounts, added to the panic. As the token’s price began to slide, even these investors rushed to exit, causing a chain reaction of stop-loss triggers and liquidations.

StarPlatinum echoed these sentiments, pointing to the team’s controversial airdrop incident just a month prior, where over 50% of eligible wallets were blacklisted without explanation. This move further alienated the community and created deep suspicion. The team’s quiet changes to tokenomics, founder inactivity, and rumors of price control through market makers also contributed to the chaos. When the wallet transfer to OKX happened, it triggered widespread fear, leading to panic selling and a rapid price collapse from $7 to just $0.50 within an hour.

In response to the crisis, MANTRA’s co-founder, John Patrick Mullin, issued a statement clarifying that the sell-off was not an insider job and that the firm is working to resolve the matter. The official statement from MANTRA assured the community that the project remains fundamentally strong and that the activity was triggered by reckless liquidations, not by the team itself. However, the community’s trust has been severely shaken, and the team’s silence following the crash has only added to the confusion and panic.

Both analysts agreed that when a token is overly centralized, lacks transparency, and constantly shifts its rules, the risk of such catastrophic events increases significantly. The OM crash serves as a stark reminder to investors to conduct thorough research before investing in any cryptocurrency project. The incident highlights the need for increased vigilance and regulatory oversight in the crypto space to prevent similar scams and protect investor interests.

The Mantra DAO crash is not an isolated incident but part of a broader pattern of scams that have plagued the cryptocurrency industry. Previous scams, such as BitConnect, OneCoin, and PlusToken, have collectively wiped out billions of dollars in investor funds. The Mantra DAO incident underscores the importance of exercising caution in the rapidly evolving crypto landscape and the need for strengthened oversight and improved security measures to reduce the frequency and impact of such scams.