Mantra Sounds the Alarm: OM Token Crash Exposes Crypto’s Leverage Crisis
The sudden collapse of Mantra’s OM token has sparked concern across the crypto sector, highlighting the dangers of unchecked leverage practices on centralized exchanges.
In an April 30 update, Mantra’s CEO, John Mullin, blamed cascading liquidations driven by excessive leverage as a core threat to market stability. He called on the industry to rethink risk policies and take collective action to protect investors.
More Than a Mantra Problem
While some blamed internal mismanagement, Mantra stressed that the root cause lies in high-leverage trading models used by many exchanges — a system that amplifies volatility and can crush even robust projects.
“We’re working with major exchanges to review these practices,” said Mantra, urging others to join the conversation and push for responsible market structures.
Mantra’s Response: Reform, Not Retreat
Despite the crash, the Mantra chain remained operational and even hit record transaction volumes — proof, the team says, of its technical resilience.
To restore trust and stabilize the project, Mantra has:
Burned 150M OM tokens to reduce supply
Launched a real-time tokenomics dashboard
Initiated a new EVM-compatible testnet, Omstead
Pledged to decentralize by integrating 50 external validators by Q2 2025
Silence from Exchanges
While Mantra is pushing for transparency, exchanges have been largely quiet. Notably, OKX, despite CEO Star Xu calling the event a “great scandal,” has refused to engage on leverage reform.
A Wake-Up Call for Crypto
The OM token collapse isn’t just a Mantra issue — it’s a warning shot for the entire sector. Without joint efforts to address risky trading practices, the industry remains vulnerable to future shocks.
Mantra is turning crisis into a catalyst for change — but the question remains: Will the rest of crypto rise to the challenge?