A Shock to the Crypto World!

In a wild start to the week, Mantra's OM token experienced an astonishing 90% drop, reminiscent of the catastrophic fall of Terra's LUNA. This sudden plummet came without any clear reason, leading to rampant speculation and conspiracy theories among crypto enthusiasts.

From $6 to Just 40 Cents Overnight!

The OM token crashed from over $6 to a mere 40 cents within hours, just after midnight on a typically quiet Sunday for the crypto market. Such low liquidity often means that significant trading volumes can create severe price fluctuations.

Mantra's Response: It's Not Us!

In light of the drastic price drop, the Mantra team took to X (formerly Twitter) to reassure users of their project's stability. They emphasized that the selloff was triggered by reckless liquidations, asserting, "This was not our team's doing. We are investigating and will share more details soon."

Highlighting Real-World Assets!

Mantra specializes in tokenizing real-world assets (RWAs) such as real estate and commodities, facilitating compliant digital investments. The OM token plays a crucial role in transactions and governance within the platform.

A Recent Partnership Paving the Way!

Earlier this year, Mantra secured a groundbreaking partnership with DAMAC Group, a prominent UAE conglomerate, to tokenize a staggering $1 billion in assets, including properties, hotels, and data centers.

Former Market Darling Faces Uncertainty!

Previously, the OM token had been a standout performer in 2024, soaring over 400% despite low public discourse, leaving traders and investors curious about the source of its strength.

Allegations of Centralized Exchange Manipulation!

Co-founder John Patrick Mullin claimed that the crash was likely fueled by centralized exchanges closing positions on OM without sufficient warning, stating, "We believe the situation reflects reckless forced closures by these platforms, impacting all exposed accounts." He insinuated that there might have been intentional market manipulation by these exchanges.

Staggering Liquidations and Market Shrinkage!

The fallout included over $50 million in liquidations for OM futures, marking a record event for the token. Open interest crashed from $345 million to just above $130 million, highlighting a swift retreat from unsettled futures bets.

Doubts and Scandals in the Crypto Sphere!

Despite the Mantra team's clear stance, some influential voices in the crypto community are skeptical of their narrative. OKX founder Star Xu pointed out that over $220 million in token deposits were made to exchanges right before the crash, calling this chain of events a "major scandal for the entire crypto industry." He noted that data from on-chain unlocks and deposit activity remains public, hinting at a broader investigation into the matter.