Do you think major altcoins are completely safe and free from fraud?
$OM has proven the exact opposite.
So what caused the $OM collapse?
$5.5 billion evaporated in one hour.
Was this a scam?
A team error?
Or just a series of forced liquidations?
The chain of events began yesterday, when an entity, likely the MantraOM team, transferred 3.9 million OM tokens to the OKX exchange.
It is known within the crypto community that the OM team controls approximately 90% of the token's total supply.
Over the past year, there have been whispers that Mantra has been using market makers to artificially inflate the token's price.
In addition, they have modified the project's tokennomics and postponed the community airdrop.
After the OKX deposit, the selloff began yesterday.
But what is the real reason behind the 90% collapse?
It all comes down to over-the-counter (OTC) transactions.
Rumors circulated that OM had made several OTC trades at a discount of 50% or more.
When the price dropped by 50%, all the OTC whales found themselves at a loss.
Panic selling began as everyone rushed to be the first to get rid of their assets.
This led to a series of liquidations and a widespread sell-off.
It's a good reminder of the importance of conducting thorough personal research before making any investment in the world of cryptocurrencies.
But no one knows how it will end.
Perhaps tomorrow its value will approach zero, or the price may stabilize completely.
Just be careful and don't lose your money trying to chase every price movement.
What are your predictions for the future of the currency, and will it be delisted due to the manipulation that occurred?