$OM : From Rise to Abrupt Fall
In April 2025, the OM token of the MANTRA platform experienced a dramatic drop of over 90%, plummeting from approximately $6.30 to $0.49 within hours. This collapse wiped out around $6 billion in market value.
🔍 Main Causes of the Fall
Forced Liquidations: Large leveraged positions were automatically liquidated by centralized exchanges during periods of low liquidity, triggering a cascade of sell-offs.
Changes in Risk Policies: Binance reduced the collateralization factor of OM from 65% to 40% shortly before the fall, which may have contributed to the collapse.
Insider Selling Rumors: Movements of large volumes of OM tokens to exchanges raised suspicions of insider selling, although the MANTRA team denied involvement.
🔧 Recovery Measures
Token Burn: Co-founder John Patrick Mullin announced the burn of 150 million OM tokens from his own allocation, aiming to restore investor confidence.
Governance Updates: The team implemented improvements to the governance model and launched a testnet to re-engage developers and validators.
📊 Current Situation
Current Price: $0.31
Market Capitalization: Approximately $301 million
Trading Volume (24h): $65 million
Ranking: #158 on CoinMarketCap
Despite recovery efforts, OM continues to trade near historical lows, reflecting investor caution.
