On April 13, the MANTRA (OM) token experienced a catastrophic price drop, plummeting over 90% in less than an hour, resulting in over $5.5 billion in market value evaporating.
The sudden collapse of OM caused its price to plummet from a high of $6.33 to below $0.50, similar to the notorious Terra LUNA crash, where thousands of holders reportedly lost millions of dollars.
Why did MANTRA (OM) collapse?
Multiple reports indicate that the catalyst for the event was a large token deposit associated with a wallet allegedly linked to the MANTRA team. Onchain data shows that 3.9 million OM tokens were deposited into OKX, raising concerns about a potential sell-off.
It has been reported that the MANTRA team controls nearly 90% of the total supply of the token, which immediately raised alarms about potential insider activity and price manipulation.
The OM community has long expressed concerns about transparency. Over the past year, several allegations have surfaced claiming that the team manipulated token prices through market makers, altered token economics, and repeatedly delayed community airdrops.
When the OKX deposits were discovered, concerns grew about insiders possibly preparing to sell.
The report also indicates that MANTRA may have been involved in undisclosed over-the-counter (OTC) trades to sell tokens at significant discounts—sometimes even below 50% of market value.
As the price of OM rapidly declined, these OTC investors suffered losses, reportedly triggering panic selling and mass withdrawals. The chain reaction led to stop-loss orders and forced liquidations of leveraged positions, exacerbating the market collapse.
The MANTRA team denied all allegations of collusion and insisted that its members did not initiate any sell-offs.
Co-founder John Patrick Mullin stated in a public announcement that the team is investigating the issue and is committed to finding a solution.
The project's official Telegram channel was locked during the incident, further heightening community frustration and speculation.
MANTRA founder JP Mullin stated, "We have determined that the volatility of the OM market was triggered by centralized exchanges recklessly forcing the closure of accounts held by OM account holders. The timing and depth of this collapse indicate that account positions were suddenly closed without adequate warning or notice."
If OM cannot recover, it will become one of the largest collapses in cryptocurrency history since the Terra LUNA crash in 2022.
Thousands of affected holders are now calling for the MANTRA team to maintain transparency and accountability, while the broader crypto community is closely watching for answers.
