Why Did $OM Crash from $6 to $1? Here’s the Full Breakdown:

The sharp drop in $OM’s price can be traced back to major changes in its tokenomics, officially announced by MANTRA to support the upcoming MANTRA Chain mainnet.

What Changed?

1) Token Supply Doubled:

888,888,888 new $OM tokens were minted, bringing the total supply to 1.78 billion.

2) Inflationary Model Introduced:

$OM shifted from a fixed supply to an uncapped inflationary model for more flexibility in ecosystem growth.

New Allocations Include:

1) OM Upgrade Rewards for current stakers

2) Genesis Airdrop & Incentivized Testnet to boost adoption

3) Core Contributor Incentives for team, investors & advisors

Why the Crash?

1) Dilution: The supply increase devalued existing holdings, triggering a wave of sell-offs.

2) Uncertainty: The move to an inflationary model raised concerns about long-term value.

3) Upcoming Unlocks: A scheduled release of 7.07 million OM on April 18, 2025, added more pressure.

Binance Reacts:

Binance flagged the #OM trading pair due to the sudden and significant changes in its tokenomics, warning users of increased risk.

Bottom Line:

The tokenomics shift may support long-term growth, but short-term market sentiment reacted sharply. Always DYOR before investing.

#REACT #Move