The MANTRA (OM) cryptocurrency experienced a sharp drop of over 90% in a single day in April 2025, sparking widespread concern in the cryptocurrency community. Here are the main reasons behind this sudden collapse:
---
📉 The main reasons for the decline of the OM coin:
1. Forced liquidation of highly leveraged positions
MANTRA co-founder John Patrick Mullen reported that the primary cause of the crash was the forced liquidation of large positions using OM as collateral. These liquidations were executed by a centralized exchange during low liquidity hours, triggering a series of sell-offs that caused the price to collapse.
2. Heavy selling by major investors (whales)
Prior to the crash, a number of major investors moved large amounts of OM to exchanges such as OKX and Binance. For example, approximately 14.27 million OM tokens (worth approximately $91 million) were transferred to OKX three days before the crash, increasing selling pressure on the market.
3. Rumors and speculation about insider trading
Rumors of insider trading and market manipulation spread, especially after unusual movements of large amounts of the currency were observed prior to the crash. Although the MANTRA team denied these allegations, the suspicions negatively impacted investor confidence.
4. Fragile market conditions and low liquidity
The collapse coincided with unstable market conditions and low liquidity, making the market more vulnerable to sharp fluctuations. The sudden sell-offs during this period further exacerbated the collapse.
---
🔧 MANTRA Team's steps after the collapse:
Burn 150 million OM coins: to reduce supply and increase value.
Accelerating the decentralization process: by adding 50 external auditors and reducing reliance on internal auditors.
Launch a transparent dashboard: to view tokonomics data in real time.
New Network Testing (Omstead): To improve technical infrastructure.
