The OM token (MANTRA) fell nearly 90% in a few hours on April 13, 2025, plummeting from a peak of $6.33 to $0.58. This sudden collapse wiped out between $3.5 and $4.5 billion in market capitalization, leaving investors shocked and seeking explanations. Below, I detail what happened, the possible causes, and the impact of this event.

What happened?

The drop was abrupt, occurring in less than an hour, according to reports. The token, which was among the most valued in the market, lost most of its value in a short period, generating panic among investors. Furthermore, the project's team deleted the official Telegram group of Mantra, cutting off communication with the community during the crisis.

What caused the drop?

The main cause pointed out is the allegation that the team behind Mantra dumped their entire allocation of tokens, which represented about 90% of the circulating supply. This "dumping" would have been done deliberately, possibly through over-the-counter (OTC) trades, with the team manipulating the market to profit at the expense of investors. The suspicions of manipulation were reinforced by the lack of an official response from the team up to this point, leading some to classify the event as "one of the biggest scams" in the cryptocurrency market.

Impact on investors and the market

  • For investors: The loss was devastating. Many saw their investments evaporate in hours, with the OM token dropping from a prominent position to a nearly insignificant value.


  • For the market: The collapse affected confidence in the sector of Real World Assets (RWA), where Mantra operated, and may generate greater caution regarding similar projects. The drop also serves as a warning about the risks of tokens with high ownership concentration in the hands of a few holders.

What to expect now?

The future of the OM token is uncertain. Without an official explanation from the team, confidence in the project is shaken. If the dumping allegations are confirmed, the team may face legal consequences, and the token is unlikely to recover. On the other hand, a convincing response could mitigate the damage, although this seems unlikely at the moment.

Lesson for investors

This event highlights the importance of:

  • Conduct detailed research before investing.

  • Avoid projects with high token concentration or little transparency.

  • Diversify the portfolio to reduce risks.

Conclusion

The 90% drop of the OM token in a few hours is a shocking example of the volatility and risks of the cryptocurrency market. Allegations of manipulation by the Mantra team turned this event into a significant scandal, reinforcing the need for caution when investing in this sector.