In the early morning of April 14, 2025, the MANTRA ($OM) token plummeted by about 95% in just 90 minutes, falling from $6.3 to about $0.37, followed by a slight rebound. As of now, the price of OM is $0.874747;
According to monitoring by on-chain analysts, since April 7, at least 17 wallet addresses have deposited a total of 43.6 million OM tokens into exchanges, worth approximately $227 million, accounting for 4.5% of the circulating supply. Additionally, other monitoring data shows that one wallet address received about $36 million worth of OM tokens from Binance on March 21 and transferred about 4.3 million OM tokens to OKX on April 12, accounting for approximately 4.5% of the circulating volume.
Scenario restoration (speculation + on-chain data combination):
1. A large holder deposited a significant amount of OM into a centralized exchange (OKX)
2. Used OM as collateral or leveraged long positions
3. Price retraced to the liquidation line, triggering the forced liquidation mechanism
4. The system automatically sold the collateralized OM, causing a larger drop
5. Chain liquidations, large holder positions exploded, and the market experienced a complete sell-off
(Liquidations are usually triggered by machines; as long as the trigger line is hit, they will sell regardless of how absurd the price is, leading to liquidity exhaustion.)
FDV overvaluation and disconnection from market valuation
-TVL (Total Value Locked): Only $13 million
-FDV (Fully Diluted Valuation): Up to $9.5 billion
-OM's market cap/TVL ratio at the time = 730+
This is an extremely unhealthy indicator, indicating that the market cap far exceeds its actual value support.
Many smart funds may have already laid out strategies of "short selling + shorting + liquidation counterattack," waiting for emotional triggers to ignite.
The MANTRA team stated that this sharp decline was mainly due to large leveraged positions held by major players on centralized exchanges (CEX) being forcibly liquidated, rather than active selling by the project team. Co-founder John Patrick Mullin pointed out that large OM investors faced massive forced liquidations on CEX, leading to the sharp price drop. According to DeFiLlama's data, the total locked value (TVL) of the MANTRA protocol is only about $13 million, while its fully diluted valuation (FDV) reaches $9.5 billion. This huge gap raises doubts about the rationality of its market valuation, increasing investor panic.
During the price drop, the MANTRA Telegram group was temporarily inaccessible, and community leader Dustin McDaniel stated that he was unaware of the situation and failed to respond promptly to investor concerns, further exacerbating market unease.
