Volatility impacted the MANTRA OM token project with a significant price crash, fueled by unverified market manipulation claims and investor uncertainty.
The price of OM, the token for the MANTRA ecosystem, drastically decreased by 90% in four hours.
Binance data indicates this sharp decline eliminated billions of dollars in market value.
OM Token Value Plummets in Hours
OM’s price dropped from over $6 to $0.37 on April 13th.
This crash effectively erased most of the gains achieved since its rapid growth, starting with $0.0158 in January 2024.
Earlier in the year, the token had reached a peak of $9.
At the time of this report, OM was trading above $0.6 but remained approximately 93% lower than its all-time high.
While the definitive cause of the price drop is undetermined, speculation suggests the project team might have sold off their tokens.
MANTRA Cites Liquidations, Rejects Dumping Allegations
MANTRA denies any involvement in the OM token’s 90% price collapse.
The project team attributes the event to extensive forced liquidations in the market.
Dustin McDaniel, MANTRA’s community lead, communicated on the project’s Telegram channel, acknowledging community concerns and stating that the team was preparing a response.
Currently, the project’s Telegram group has restricted new members.
MANTRA released an official statement refuting any internal triggers for the sell-off and promising to release more details shortly.
Co-founder Attributes Crash to Forced Exchange Liquidation
During an X Spaces session after the OM token collapse, MANTRA co-founder John Patrick Mullin described the situation as “unprecedented” and blamed massive forced liquidations on an unnamed exchange.
Mullin stated he had just become aware of the situation and emphasized that the team was still investigating the exact causes.
According to Mullin, initial information indicates a substantial forced liquidation event occurred during an exchange over the weekend.
He explained that the exchange “took over several different positions and completely just closed them out,” but the reasons behind this action are still under investigation.
MANTRA’s Role in RWA Tokenization
MANTRA is an active participant in the real-world asset (RWA) tokenization sector.
The project has previously attracted attention through partnerships with Google Cloud and Dubai’s DAMAC Group.
Also Read: MANTRA has initiated the Mainnet to enable the integration of real-world assets into the blockchain
