Cryptocurrency market is rocked by the dramatic crash of Mantra’s $OM token, which plummeted over 90% in a single day, dropping from $6.30 to under $0.50 and erasing billions from its $6 billion market capitalization.
Unlike the LUNA crash, where most traders avoided closing positions due to limited exposure to LUNA or its ecosystem tokens, the OM crash appears to have been driven by what Mantra’s team described as “reckless forced liquidations” on centralized exchanges, though some social media posts speculate about deeper issues like market manipulation or team-controlled supply.
The $LUNA crash serves as a historical parallel. Before its collapse, LUNA boasted a $40 billion market cap, which shrank to $200 million, triggering a chain reaction that saw most cryptocurrencies lose 50% or more of their value.
The OM crash, while significant, has not yet shown the same market-wide devastation, with Bitcoin remaining stable above $84,000. However, the real-world asset (RWA) tokenization sector, where OM operates, saw a 44.93% drop in 24 hours, indicating a targeted impact.
Could OM’s crash lead to a broader crypto market collapse today? With a pre-crash market cap of $6 billion—smaller than LUNA’s at its peak—OM’s influence is less pervasive. Still, its collapse highlights vulnerabilities in projects with concentrated token control or heavy leverage.
A market-wide crash seems unlikely unless larger assets like $BTC or Ethereum falter, but investor confidence could take a hit, especially in #RWA tokens. The crypto market’s resilience will depend on broader economic factors, like tariff-driven volatility, and whether projects like OM can rebuild trust.
