In April 2025, Mantra's OM token experienced a severe price crash, plummeting by 90% in a short period. The primary cause was attributed to "massive forced liquidations" by centralized exchanges, particularly during periods of low liquidity, which triggered a cascade of sell-offs. Rumors of insider selling also contributed to the panic. The crash resulted in billions of dollars in market capitalization being wiped out, and the incident raised concerns about risk management and transparency within the MANTRA ecosystem.

Here's a more detailed breakdown:

The Crash:

The OM token price dropped from around $6.32 to as low as $0.49 on April 13, 2025.

Forced Liquidations:

Centralized exchanges, during low liquidity hours, initiated large-scale liquidations of OM positions, which overwhelmed the market and caused the price to plummet.

Low Liquidity:

The OM token had a shallow market depth, meaning there were not enough buyers to absorb the large sell orders, exacerbating the price drop.

Insider Selling Allegations:

Rumors of team members selling their tokens, although denied by the team, further eroded investor confidence.

Consequences:

The crash led to a significant loss of market capitalization and raised questions about the project's risk management and potential vulnerabilities.

MANTRA's Response:

The team has stated that the crash was not due to any actions by the project itself, and they plan to implement a buyback and burn program to stabilize the price and reduce the circulating supply.

Ongoing Concerns:

Despite the team's efforts, some concerns remain regarding the transparency and overall health of the MANTRA ecosystem.