OM Token Crash Overnight: A Breakdown of the Mantra Meltdown
In a stunning turn of events, the OM token, the native asset of the Mantra ecosystem, suffered a dramatic crash overnight—plummeting over 90% in value within hours. The token, which was trading above $6, nosedived to below $0.37, wiping billions in market cap and sparking widespread concern in the crypto world
Unraveling the Collapse
The collapse appears to have been triggered by a wave of forced liquidations. According to Mantra co-founder John Patrick Mullin, a large investor's leveraged position was liquidated, leading to a domino effect across centralized exchanges. Adding fuel to the fire, the Mantra team had recently minted 888 million new OM tokens—effectively doubling the circulating supply. This decision raised red flags among investors who feared dilution and questioned the timing.
Community Reaction and Allegation
The reaction from the crypto community was swift and intense. Accusations of a "rug pull" began circulating, with some alleging that insiders had dumped tokens during the crash. Social media lit up with screenshots, theories, and anger—especially after the project’s official Telegram group became temporarily inaccessible. The incident has severely damaged trust, with many investors calling for a full audit and greater transparency from the Mantra team
Mantra Team's Response
The Mantra team has denied any malicious intent. In a public statement, they blamed “reckless liquidations” rather than internal activity for the crash. Mullin offered transparency by publishing the wallet addresses holding team tokens, which he claimed had not been touched. Despite the effort to reassure the community, many remain unconvinced and are demanding more detailed evidence and accountability.
The road to recovery will be steep for OM. Investor confidence has been deeply shaken, and the project must now work hard to rebuild its reputation. Whether Mantra can stabilize and regain trust remains to be seen. For now, the OM token crash stands as a cautionary tale in crypto's volatile landscape—highlighting the risks of low liquidity, leverage, and unclear tokenomics
