Mantra’s $OM token crashed over 90% in hours—from $6.30 to $0.43—wiping out billions and triggering panic. Some are calling it “the next LUNC,” but the reality is more complicated. The crash was likely caused by forced liquidations from a large investor on CEXs like OKX, where over $36M in OM was moved just before the drop. CEO John Mullin blamed reckless sell pressure and denied any team dumping, claiming their tokens remain untouched and verifiable on-chain.
Social media fueled fears, accusing the team of dumping 3.9M OM. Meanwhile, last month’s airdrop controversy—where over 50% of users were blacklisted—further eroded community trust. Add in bearish signals like March’s 20% drop and a looming death cross, and the crash appears to be the result of internal tension, weak liquidity, and sentiment panic, not necessarily a protocol failure like LUNC.
Unlike LUNC, which collapsed due to a failed stablecoin system, OM is tied to real-world asset tokenization with backing from partners like DAMAC and a Dubai VARA license. The team is still active and addressing concerns, but the lack of community momentum, major backing, and ongoing suspicion over token control leaves recovery uncertain.
OM isn’t dead, but it's at a critical point. If the team can regain trust and deliver on its promises, a rebound is possible. For now, it’s a warning—not a repeat—of $LUNC .