$OM Token Plummets 90% – Here's What Triggered the Crash
The Mantra DAO (OM) token saw a dramatic 90% collapse in less than 24 hours, falling from over $6.30 to under $0.50. The plunge is believed to have been triggered by a large-scale forced liquidation, likely from an overleveraged whale. On-chain data revealed that millions of OM tokens were transferred to Binance and OKX just before the crash, sparking concerns over internal risk management and tokenomics stability.
The Mantra team responded, citing a major investor's liquidation as the cause, while assuring that the project’s treasury and team tokens remain unaffected. However, panic intensified after their Telegram group briefly went offline, and users raised alarms over governance issues and DAO transparency.
With Mantra actively involved in the RWA (Real World Assets) space and launching on Cosmos and Polygon zkEVM, the timing of this crash could disrupt its momentum.
Is this a shakeout, a red flag, or a buying opportunity?