Reason behind Mantra Dao /#Om crash
The 90% crash of MANTRA’s OM token on April 13, 2025,
Reports indicate a wallet, possibly linked to the team, deposited 3.9 million OM tokens to OKX before the crash, raising concerns about insider selling given the team’s reported control of nearly 90% of the token’s supply. This sparked allegations of market manipulation or a rug pull, with some comparing it to the Terra LUNA collapse. Social media posts amplified these claims, noting the project’s Telegram group was locked during the fallout, fueling distrust.
Additional context includes potential over-the-counter (OTC) deals at discounted rates, which may have led to panic selling when prices dropped, triggering stop-loss orders and leveraged position liquidations. The timing—late Sunday UTC—likely exacerbated the impact due to thin order books. Despite the team’s insistence on investigating and hosting community discussions, many investors remain skeptical, citing prior concerns about transparency and tokenomics.
In summary, while the team attributes the crash to external liquidations, suspicions of insider activity, combined with market dynamics like low liquidity and leveraged trading, likely contributed to the rapid collapse. The exact truth remains under scrutiny as investigations continue.
#Mantra Dao crash
#market manipulation
#Insider trading
