The OM token, native to the MANTRA blockchain ecosystem, suffered a catastrophic collapse on Sunday, April 13, 2025, plunging over 90% in a matter of hours. The token, which was trading around $6.30 earlier in the day, fell to below $0.50, erasing more than $5.5 billion in market capitalization and triggering widespread panic across the crypto market.
According to the MANTRA team, the collapse was caused by a series of “reckless liquidations,” including a large-scale forced liquidation executed on a centralized exchange by a major OM holder. The sharp price decline rapidly snowballed into a liquidation cascade that impacted numerous traders. Over $66.97 million in positions were wiped out in just 12 hours, including at least 10 positions valued at more than $1 million each. The speed and scale of the collapse drew comparisons to past crypto meltdowns such as Terra’s LUNA and the FTX debacle, which similarly shook investor confidence.
While liquidations in volatile markets are not uncommon, the scale and suddenness of OM’s collapse were exacerbated by the concentration of tokens held by a few large players and the apparent lack of safeguards to prevent such cascading events. The rapid price movement led to increased volatility across decentralized and centralized platforms where OM is traded, compounding losses for retail and institutional investors alike.
Allegations of Insider Activity Intensify
In the immediate aftermath, allegations of insider trading began circulating on social media and blockchain monitoring forums. Analysts identified a wallet allegedly linked to the MANTRA team that transferred approximately 3.9 million OM tokens to the OKX exchange shortly before the crash began. This timing has raised suspicions among community members and market observers, fueling concerns about transparency and potential misconduct within the project’s leadership.
John Patrick Mullin, co-founder of MANTRA, moved quickly to address the growing concerns. In a public statement, Mullin categorically denied any team involvement in the sell-off, asserting that tokens allocated to the team remain untouched and are held in verified custody wallets. He also provided the relevant wallet address as evidence, emphasizing the team’s commitment to transparency.
Despite a modest recovery early Monday morning, with OM trading around $0.83, the token remains significantly below its prior valuation. Investor sentiment remains fragile, and the broader MANTRA community is now calling for a comprehensive post-mortem report, clearer tokenomic disclosures, and enhanced protective mechanisms to restore confidence.
The incident has renewed industry-wide discussions about the risks of token concentration, the need for better on-chain monitoring tools, and the importance of robust governance practices in decentralized finance. As scrutiny intensifies, MANTRA’s next steps will be crucial in determining whether the project can recover from this reputational and financial blow.
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