The collapse, which occurred on April 13, 2025, sparked fears of a rug pull and led to widespread confusion and panic among investors. The sudden crash was attributed to forced liquidations initiated by centralized exchanges, according to Mantra co-founder John Patrick Mullin. The situation has prompted discussions about the role of exchange policies in creating market risk and the need for greater transparency in the crypto industry.

Here's a more detailed breakdown:

Significant Price Drop:

The OM token's price plummeted by over 90%, from a high of around $6 to a low of $0.456472 within a single day.

Market Cap Loss:

The market capitalization of Mantra (OM) fell from over $6 billion to $681 million in the same timeframe.

Liquidation Event:

Mantra co-founder JP Mullin blamed "reckless forced closures" by a centralized exchange for triggering the crash.

Community Reaction:

The sudden crash led to concerns about a rug pull and comparisons to other crypto failures like Luna and FDX.

Team Response:

Mantra has expressed its commitment to working with exchanges to improve market stability and calling for industry-wide discussions on exchange policies.

Burning of Staked Tokens:

Mantra has also burned 150 million staked OM tokens to reduce the total supply and enhance transparency.

Transparency and Rebuilding:

Mantra has launched a real-time dashboard to provide tokenomics data and is focusing on rebuilding trust with the community,$OM