💥 The Sudden Collapse of $OM Token — What Went Wrong?
On April 13, 2025, the crypto community watched in disbelief as OM, the native token of the Mantra ecosystem, crashed by over 90% within just a few hours. The token price dropped from $6.30 to as low as $0.37, wiping out more than $5.4 billion in market capitalization.
This dramatic plunge caught the attention of many, raising questions about the internal workings of the project and the risks involved in centralized exchange activity.
🔍 What Caused the Crash?
According to Mantra’s co-founder, the crash was triggered by “reckless forced closures” initiated by centralized exchanges. Over $71 million in OM positions were liquidated, creating a cascade effect that spiraled the price downward.
Adding to the chaos, blockchain analysts observed that 17 wallets deposited 43.6 million OM tokens (~$227M) to exchanges just before the drop. Some of these wallets were believed to be linked to major investors like Laser Digital and Shorooq Partners — though both firms denied any involvement, and Mantra later claimed the wallets were misidentified.
📊 A Deeper Issue?
One of the most concerning discoveries post-collapse was that one wallet allegedly controls 77% of OM’s total supply. This level of centralization poses significant risks in terms of price manipulation and market integrity — something critics have raised red flags about.
💡 What’s Next for OM?
After the crash, OM briefly rebounded to $1.10 — a 200% jump from its bottom — but uncertainty remains. The Mantra team has announced plans for recovery, including potential token buybacks, though details are still limited.
🧠 The Bigger Picture
The OM crash highlights ongoing concerns in the DeFi space:
$$$$$$$Token supply concentrationLack of transparencyVulnerabilities tied to centralized exchange mechanics
Whether this was a flash crash fueled by market panic or a symptom of deeper flaws in tokenomics and governance — it’s a moment the crypto world won’t forget.
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