The #OM cryptocurrency, associated with the MANTRA project, experienced a catastrophic 90% price drop within just two hours on April 13, 2025.
The crash, which wiped out billions in market capitalization, was reportedly triggered by allegations that the project team dumped approximately 90% of the token's circulating supply.
Here are the key factors behind this dramatic decline:
Allegations of Team Dumping
Multiple reports claim that the #MANTRA team sold off their token allocation, representing a significant portion of the total supply.
This alleged insider sell-off caused a massive oversupply in the market, leading to a steep price collapse. Social media platforms also reported that the team deleted the project's official Telegram group, further eroding investor trust.
Market Manipulation Concerns
Critics have accused the #mantra team of manipulating token prices to facilitate over-the-counter (OTC) sales.
These actions have led to widespread calls for legal action, with some community members labeling the incident one of the biggest cryptocurrency scams in recent memory.
Broader Sentiment Issues
#Investor confidence had already been shaken by earlier concerns about tokenomics, including allegations that the team controlled up to 90% of the token supply. Additionally, dissatisfaction over poor airdrop allocations and vesting terms further fueled negative sentiment.
Lack of Communication
The absence of an official statement from #MANTRA's leadership has left investors in uncertainty. This lack of transparency has exacerbated fears and speculation surrounding the project's future.
The crash has drawn comparisons to other infamous cryptocurrency collapses, such as Terra Luna, highlighting its significant impact on the market and investor trust. As of now, OM's future remains uncertain, with trust in the project fundamentally shaken.
