**Binance Founder CZ Discussed the Collapse of Mantra (OM): Explained the Key Factor Showing Risks in Altcoins**
**Mantra (OM)** shocked investors by experiencing a drop of over 80% in seconds.
While the reason for this sudden collapse is being questioned, **MANTRA CEO John Patrick Mullin** stated that no team member or partner sold their OM tokens. Mullin claimed that the drop was caused by deliberate actions against OM token holders by centralized exchanges.
**OKX founder and CEO Star Xu** described the events as "a major scandal" and announced that he would soon publish a detailed report.
**Binance** stated in its announcement that initial findings revealed that the sudden drop in the OM token price was caused by **inter-exchange liquidations**.
**Binance Founder Changpeng Zhao (CZ)** also made a statement regarding the matter. CZ, who said, “Like everyone else, I was curious about ‘what happened?’ I had no knowledge of the project until the collapse,” also answered questions about whether Binance had exercised the necessary caution regarding OM.
CZ emphasized that Binance has taken various **risk control measures** such as reducing leverage ratios for OM tokens since October of last year and acted carefully during this process.
CZ also touched on the key factors that investors should pay attention to in order to understand the risks in projects like OM, stating that **“the number of real users” is an important indicator of the risk level in altcoin projects**.
Finally, CZ underlined that investors should focus on solid data based on **user growth, revenue, and profitability** rather than rumors and advertisements when making investment decisions.
*This article does not contain investment advice.*