OM Token Plummets 90% in One Hour, Laser Digital Denies Involvement

Laser Digital, a strategic investor in the Mantra chain, has issued a statement addressing recent speculation about its involvement in the dramatic price collapse of the OM token. The company categorically denied any involvement in the sell-off that led to the token's significant price decline, which occurred on April 7. The OM token experienced a catastrophic drop of over 90% in just one hour, resulting in a loss of $5.5 billion in market value. This sudden downturn sent shockwaves through the crypto community, with various factors contributing to the dramatic crash.

Laser Digital's statement emphasized that the recent price drop of OM has no correlation with its activities. The company clarified that statements on social media suggesting its involvement in an 'investor sell-off' are incorrect and misleading. Laser Digital explicitly stated that it has not deposited any OM tokens into OKX, and the mentioned OKX-related wallets are not owned by the company. The company remains aligned with its partners, and its core OM investment is still in a locked state. Laser Digital reiterated its commitment to transparency and its lack of interest in exerting pressure on the token or undermining the stability of the project.

The chain of events began when a wallet, possibly associated with the OM team, deposited 3.9 million OM tokens on the OKX exchange. This action drew significant attention, as the OM team controlled nearly 90% of the total token supply. Over the past year, the team has faced criticism for allegedly using market manipulation tactics to inflate the price of OM. The latest deposit appeared to trigger a chain reaction, leading to large-scale selling and raising suspicions of prior over-the-counter (OTC) deals made at steep discounts, possibly as high as 50%. These deals would have placed significant amounts of OM into the hands of major holders, who found themselves underwater when the price dropped by half.

As the token’s value continued to fall, panic selling took hold. Investors rushed to sell their positions, causing a cascading liquidation event that pushed the price to its breaking point. In the aftermath of the crash, Mantra co-founder JP Mullin addressed the situation, confirming that the market plunge was triggered by “reckless liquidations.” According to Mullin, exchange actions, such as closing positions without warning, margin calls, or adequate notice, exacerbated the situation. He clarified that the crash did not result from the team, its investors, or its core advisors selling tokens. He emphasized that their tokens remain locked and are subject to the published vesting periods. Mullin also highlighted that Mantra has endured multiple market cycles and continued building when others stopped, and this situation is no exception.

Meanwhile, OKX CEO Star Xu described the OM token collapse as a major scandal for the entire crypto industry. He noted that all on-chain unlocking, deposit, collateral, and liquidation data are publicly available and can be investigated across major exchanges. Star added that OKX would prepare and release all relevant reports, following a report revealing that 17 wallets had deposited 43.6 million OM tokens, worth $227 million, to exchanges before the crash, with two wallets linked to Laser Digital.

Mantra’s official communication sought to reassure its community, emphasizing that they were not responsible for the crash and that no team tokens had been moved during the incident. The team reiterated that the project remained fundamentally strong despite the price collapse. However, the damage had already been done. Many investors expressed disappointment, with some calling for clearer explanations from the team about what led to the massive sell-off. Crypto sleuth ZachXBT also weighed in, expressing concerns about the scale and speed of the crash. He questioned the logic behind the massive drop and noted that the explanation provided by the Mantra team did little to clarify the situation.