The main reasons for the decline of OM:
1. Forced liquidations on centralized exchanges (CEX): Mantra DAO stated that the main reason was due to centralized exchanges conducting forced liquidations of large OM positions during low liquidity periods, causing strong selling pressure and leading to a domino effect that drove prices down.
2. Lack of market liquidity: The OM market has thin liquidity, making prices susceptible to strong fluctuations during large trades, especially in low liquidity periods.
3. Rumors and concerns about internal sell-offs: After the event, rumors emerged about the Mantra DAO team conducting internal sell-offs. However, the project team denied this and stated that their tokens remain locked according to schedule.
4. Communication incident: Right after the event, the official OM Telegram group was deleted, raising doubts and confusion in the investor community.
Response from the Mantra DAO team:
To reassure the community, co-founder John Patrick Mullin announced a plan to buy back and burn OM tokens worth $160 million, including $80 million from himself. However, OM's price continues to decline, indicating that investor confidence has not been restored.
Current situation and outlook:
As of May 20, 2025, the price of OM fluctuates around $0.38, down over 96% from its peak of $9.01 in February 2025. The 24-hour trading volume is approximately $67 million, indicating that trading activity still exists but market confidence remains weak.
Investment assessment:
The sharp decline of OM serves as a reminder of the risks in cryptocurrency investment, especially with projects that have low liquidity and centralized governance. Investors should be cautious, closely monitor the actions of the Mantra DAO team, and reassess their investment strategy.
