Mantra bounces 200% after OM price crash but poses LUNA-like 'big scandal' risk

The OM price bounce appears eerily similar to what Terra's LUNA witnessed after its 99% crash in May 2022.

OM $0.4981  token staged a sharp rebound after plunging 90% over the weekend, following an active response from the project’s team addressing allegations of a rug pull scam.

Co-founder JP Mullin reassured the community that the project remains active, pointing to the official Telegram group being “still online.”

“We are here and not going anywhere,” Mullin wrote, also sharing a verification address to prove the team’s OM token holdings. He attributed the OM’s crash to “reckless forced closures initiated by centralized exchanges.”

The assurance calmed the OM token sell-off that had obliterated over $5 billion in market capitalization and liquidated $75.9 million worth of futures positions in a day.

Numerous online commentators claimed the Mantra team, reportedly controlling 90% of the token supply, orchestrated the sell-off amid suspicious OM transfers to centralized exchanges right before the crash.

 token staged a sharp rebound after plunging 90% over the weekend, following an active response from the project’s team addressing allegations of a rug pull.

Numerous online commentators claimed the Mantra team, reportedly controlling 90% of the token supply, orchestrated the sell-off amid suspicious OM transfers to centralized exchanges right before the crash.