#OM (Mantra) Reasons for the 90% drop – What happened?
In April 2025, the OM token from the Mantra project unexpectedly plummeted by 90% in value, shocking investors. Below are the main reasons:
Reasons for the sharp decline of OM
Forced liquidation: A large investor using leverage was liquidated on the CEX exchange, causing the price to drop due to poor liquidity.
Selling pressure from 'whales': Large wallets pushed the token onto exchanges like Binance, OKX to take profits.
High leverage trading: Leverage policies from the exchange increased risks when the market fluctuated.
Panic due to rumors: Rumors about the founder leaving the project caused investors to panic and sell off.
Weak liquidity: Thin trading volume could not absorb large sell orders.
Mantra's actions after the incident
Announced the burning of 300 million OM tokens (equivalent to 16.5% of the total supply).
A portion of the tokens burned came from the founder himself.
Goal: Restore trust and increase staking rewards for holders.
Lessons learned
Should not FOMO into tokens with weak liquidity.
Be cautious when seeing unusual activity in whale wallets.
Leverage is a double-edged sword.
Unverified rumors can lead to mass sell-offs.
Conclusion: Although OM may recover, this is a strong reminder of the risks when investing in altcoins – especially when using leverage or lacking psychological control.