In short

  • The Mantra token experienced a rapid decline, resulting in heavy losses for investors.

  • Suspicious trading activities have raised concerns about market volatility.

  • Experts emphasize the importance of investors staying calm during the recovery process.

The cryptocurrency market is showing signs of recovery; however, the crash of the Mantra (OM) token has caused significant concern among investors. In a very short period, the price of OM plummeted nearly 90%, resulting in severe financial losses for holders. Reports indicate losses of about $400 million, with a total market capitalization shrinking by $6 billion. The price drop of OM occurred during a time of strict scrutiny on on-chain analysis and investor movements. Experts believe the impact of this event is similar to the LUNA crisis and may lead to a loss of market confidence in the short term.

Suspicious investor behavior triggered the decline

According to data analysis from the cryptocurrency tracking platform Spotonchain, 19 new wallets were created and held 14.27 million OM tokens worth approximately $91 million in the three days leading up to the price crash. This operation intensified price volatility, laying the groundwork for the subsequent sharp decline. Reports indicate that these OM tokens were purchased through major exchanges like Binance, setting the stage for the crash in advance.

Additionally, on-chain analysis conducted by A Lookonchain shows that approximately 227 million OM tokens (equivalent to 4.5% of the circulating supply) are controlled by only 17 different investors. This immense selling pressure is considered a key factor in the plummeting price of OM.

Market expert StarPlatinum emphasized that such volatility is not only related to technical indicators but also to investors' psychological reactions. A sudden wave of selling may trigger panic, prompting other investors to follow suit.

Mantra team: 'Forced liquidations accelerated this process'

Mantra co-founder Patrick Mullin clarified that this decline was not orchestrated by the Mantra team or its advisors. He stated that OM tokens remain locked and are managed according to predetermined maturity timelines. Mullin also noted that the tokenomics of OM has not changed, and all wallet addresses are transparently accessible online.

The company's statement emphasized that forced liquidations on centralized platforms are a significant reason for the price drop. Due to the depreciation of collateral value, investors' positions were automatically liquidated, leading to a rapid price decline. This situation could trigger a chain reaction in the market.

Currently, the price of the Mantra token hovers around $0.8, with a total market capitalization of approximately $761.45 million. Experts emphasize the importance of investors remaining calm during the recovery phase after such a drastic decline.#om