Urgent Mantra OM Network Upgrade and Its Impact on Bithumb's Liquidity and Investor Confidence

The Urgent Mantra (OM) Network Upgrade of 2025 represents a pivotal moment in the evolution of blockchain infrastructure, offering both immediate challenges and transformative potential. As the project transitions its governance token from Ethereum's ERC-20 standard to its native Mantra Chain, the implications for liquidity, investor confidence, and market stability are profound. This analysis examines the short-term risks and long-term opportunities tied to the upgrade, with a focus on Bithumb's role in managing liquidity during this critical period.

Short-Term Risks: Liquidity Disruptions and Investor Panic

The April 2025 v4.0.0 upgrade, which migrated OM to its native chain, was accompanied by a catastrophic 90% price crash. This collapse was driven by a combination of forced liquidations on centralized exchanges, token dumping by large holders, and a lack of liquidity in the market Why Mantra’s OM Token Crashed 90% & What It…^[2]. Bithumb's temporary suspension of OM deposits and withdrawals in September 2025—standard practice during network upgrades—further exacerbated short-term volatility, as users faced uncertainty about fund accessibility Urgent Mantra OM Network Upgrade: Bithumb Temporarily Halts Deposits and Withdrawals^[1].

Liquidity metrics on Bithumb during the September 17–24, 2025, suspension period revealed uneven trading dynamics. On September 17, sell volumes outpaced buys by 56% to 44%, reflecting heightened bearish sentiment MANTRA (OM) Gets Bithumb Listing, Eyes Potential Price Recovery^[3]. While the market showed slight balance by September 24 (51% sell vs. 49% buy), the broader context of OM's illiquidity—exacerbated by its April crash—highlighted systemic fragility. Such disruptions underscore the risks of token migrations, where even well-intentioned upgrades can trigger panic selling and liquidity slippage.

Long-Term Opportunities: Infrastructure Modernization and RWA Tokenization

Despite these challenges, the upgrade aligns with MANTRA's strategic pivot toward real-world asset (RWA) tokenization. By consolidating liquidity on its native chain and enforcing a 2.5B OM hard cap, the project aims to streamline token economics and reduce confusion between dual-token systems Mantra Proposes Full Migration of OM Token to Native Chain by 2026^[5]. The EVM Mainnet launch in September 2025 further expands developer access, enabling EVM-compatible smart contracts and fostering ecosystem growth Mantra Proposes Full Migration of OM Token to Native Chain by 2026^[5].

MANTRA's partnerships with institutions like Inveniam and Google Cloud, alongside its $20M e-bike fleet project in Dubai, position it as a leader in RWA adoption Mantra Proposes Full Migration of OM Token to Native Chain by 2026^[5]. These initiatives, coupled with a planned 8% annual inflation rate and 18% staking APR, aim to restore investor confidence by aligning token utility with tangible use cases Urgent Mantra OM Network Upgrade: Bithumb Temporarily Halts Deposits and Withdrawals^[1]. The project's token burn program—permanently removing 300 million OM tokens—also signals a commitment to supply-side discipline, addressing concerns about concentrated holdings What Happened to $OM, and How MANTRA Plans to Rebuild^[6].

Investor Confidence: A Delicate Balancing Act

Bithumb's role in stabilizing OM's market position is critical. The exchange's July 2025 listing of OM—post-April crash—introduced fresh liquidity, with the token opening at 290 KRW and rising 11.51% in 24 hours MANTRA (OM) Gets Bithumb Listing, Eyes Potential Price Recovery^[3]. However, structural issues like low liquidity and whale dominance persist, as evidenced by the 58 liquidated accounts totaling $28.38K on gate.com during the September upgrade period Real-Time Liquidation Data MANTRA (OM)^[4].

MANTRA's transparency efforts, including a real-time token dashboard and extended vesting periods for contributors, aim to rebuild trust What Happened to $OM, and How MANTRA Plans to Rebuild^[6]. Yet, investor sentiment remains cautious, with large holders offloading tokens and fears of a “bull trap” lingering MANTRA (OM) Gets Bithumb Listing, Eyes Potential Price Recovery^[3]. For long-term recovery, broader adoption of RWA use cases and institutional partnerships will be essential.

Conclusion: Navigating the Inflection Point

The Urgent Mantra OM Network Upgrade exemplifies the dual-edged nature of blockchain infrastructure advancements. While short-term risks—such as liquidity slippage and panic selling—pose immediate challenges, the long-term vision of RWA tokenization and native chain optimization offers a compelling narrative. For investors, the key lies in balancing skepticism with strategic optimism: leveraging the project's technical upgrades while remaining vigilant about market fragility. As MANTRA approaches its 2026 ERC-20 deprecation deadline, the coming months will test whether its infrastructure upgrades can translate into sustainable value creation.