On April 13, 2025, the native cryptocurrency OM token of the MANTRA project suffered a shocking collapse. Within just one hour, its price plummeted over 90%, with a market capitalization evaporating by more than $5.5 billion. The sudden collapse inevitably recalled the infamous Terra LUNA crash.
What triggered the collapse?
The panic began when a wallet allegedly linked to the MANTRA team transferred 3.9 million OM tokens to the OKX exchange. This massive deposit raised concerns about an internal sell-off, especially since the team reportedly holds about 90% of the total supply of the token.
As the price fell from a high of $6.33 to below $0.50, speculative behavior intensified. Many in the community viewed this move as a betrayal and pointed out that the enormous supply of tokens held by insiders is a long-standing unresolved danger signal.
MANTRA team refutes allegations
In response to these criticisms, MANTRA co-founder John Patrick Mullin publicly denied that the team initiated any sell-off. He attributed the plunge to what he called the reckless forced shutdowns of centralized exchanges. Mullin emphasized that the core team tokens are still locked and insisted that the project's fundamentals remain intact.
To address the growing concerns, the team is investigating the matter and has promised to communicate with the community. They plan to hold an open discussion on X (formerly Twitter) to provide further updates.
Investor frustration reaches a boiling point
As the value of OM drops, investors express deep frustration over several ongoing issues:
Lack of transparency in token liquidity
Frequent changes in tokenomics
Delayed promised airdrop
Poor communication during the crisis
Worse still, the official MANTRA Telegram channel was locked during the incident, further fueling investor suspicion and anger.
Currently, the trading price of OM is around $0.85, still down over 85% from recent highs. With uncertainty lingering, investors are demanding clearer answers from the MANTRA team and greater accountability.
