The $OM Crash: A Warning for Crypto Markets

🤫The price of Mantra (OM) plummeted from $6 to $0.50 in mere minutes on April 13, 2025, shocking the crypto community. In today’s bullish market, such drastic drops are rare, but what does this mean for a potential bear market? This incident serves as a stark reminder to stay prepared for volatility.

📌Mantra’s Official Statement
The #Mantra team conducted an investigation, revealing that the crash was triggered by forced liquidations of OM positions on centralized exchanges (CEX) during a period of low trading activity. This set off a domino effect:

🔹Initial liquidations exerted downward pressure on the price.

🔹This triggered automatic liquidations of other OM-backed loans.

🔹Further sales intensified market pressure.

🔹A price gap emerged between OM on OKX and Binance, exacerbating the collapse.

📌Unofficial Theories Behind the Crash

🔸While the official explanation points to market mechanics, speculation within the community suggests other factors:

🔸Insider manipulation: Allegations of coordinated price control by holders of ~90% of OM’s supply.

🔸Large token transfers: On-chain data revealed 43.6M OM (~$227M) moved to exchanges, including from wallets linked to strategic investor Laser Digital.

🔸Fraud accusations: Community distrust grew due to unfulfilled airdrop promises, deleted communication channels, and altered vesting schedules, fueling scam allegations.

❗Takeaway
The $OM crash highlights the risks of low liquidity, leveraged positions, and centralized exchange dynamics. As markets evolve, investors must remain vigilant, especially in a potential bear market where such events could become more frequent. Stay informed, diversify, and always assess risks before investing.