The OM token crashed over 80% in a single day due to a combination of the following key factors:

  1. Forced Liquidations:
    A large OM holder was liquidated on a centralized exchange, triggering a cascade of automatic sell orders and panic selling.

  2. Token Supply Shock:
    MANTRA doubled its total token supply by minting 888 million new OM tokens to support its mainnet launch and shifted to an uncapped inflationary model, alarming investors.

  3. Team-Linked Sell-Off Concerns:
    A wallet allegedly linked to the team deposited nearly 4 million OM tokens to OKX, raising fears of insider selling and fueling “rug pull” speculations.

  4. Exchange Warnings:
    Binance issued alerts about the major tokenomics changes, reinforcing market uncertainty.

Despite a slight recovery after the crash, investor confidence remains shaken due to the perceived lack of transparency and sudden supply expansion.

#BinanceSafetyInsights #om