On April 13, 2025, the crypto world watched Mantra’s token nosedive from $6.30 to $0.37 in hours, wiping out over $6 billion in market cap. The sudden crash raised alarms, especially as traders looked to centralized exchanges—Binance included—for answers. Here’s what we know about what caused the collapse, what Binance says in its defense, and what $OM holders should watch now.

What Caused the Crash?

Mantra, a Layer 1 RWA chain backed by big names like DAMAC and Google Cloud, had been surging. But during a two-hour window on Sunday, $OM’s price tanked by over 90%. Trading volume spiked 2,979% to $2.25 billion. For some investors, it was devastating—one reported losing $3.3M in unrealized value.

Speculation spread fast. Some on X called it a “rug pull.” Others blamed centralized exchanges for cascading liquidations. At the center: Binance, where $OM/USDT held most of the trading activity.

Binance Responds

While Mantra co-founder John Patrick Mullin pointed to “reckless forced liquidations” on centralized platforms, Binance issued its own explanation. The exchange blamed cross-exchange liquidations—a domino effect triggered by whales dumping across multiple platforms, including Bybit and OKX.

Binance highlighted its prior risk measures:

  • October 2024: Reduced trading leverage.

  • January 2025: Pop-up risk notice tied to tokenomics changes.

Those tokenomics included a supply cap removal and 3% annual inflation—major shifts that many traders had overlooked. Despite safeguards, Binance said most of the $71M in liquidated positions came from Bybit, not its own platform.

Still, criticism mounted. Some asked why Binance didn’t delist the project earlier. Interestingly, Mullin later thanked Binance for being “communicative and supportive,” softening earlier blame and leaving traders divided.


Insider Activity?

On-chain data added fuel to the fire:

  • Lookonchain tracked 43.6M OM (4.5% of supply) sent to exchanges starting April 7.

  • A wallet linked to Mantra reportedly moved 3.9M $OM to OKX pre-crash.

  • Spot On Chain flagged whales offloading tokens days before the drop.

Mantra denies insider selling. They insist their team tokens are locked and blame the crash on over-leveraged positions. But many traders remain skeptical, especially after past missteps—like an airdrop blacklist that excluded 50% of wallets.

Did Binance Contribute?

Post-crash, Binance saw $18M in 24-hour volume on $OM, dwarfing other exchanges. Its deep liquidity likely accelerated the drop as the sell pressure surged. OKX’s CEO called it a “scandal” and promised an internal review. Binance, meanwhile, pointed to its prior warnings and is still monitoring the token closely.

What Now for $OM?

Mantra has hinted at a community call but offered no roadmap for recovery. Analysts suggest a buyback could help stabilize things—but nothing’s confirmed. Short-term, $OM might hover around $1. Long-term? It depends on whether Mantra can regain trust and deliver on its RWA vision.


Key Takeaways for Traders

  • Check Tokenomics: Binance flagged $OM’s inflation risk months ago. Many missed it.

  • Leverage = Risk: $71M liquidated. Margin trading can crush you fast.

  • Follow Updates: Mantra and Binance are active on X—stay ahead, not behind.

The market meltdown is a case study in how fast things can fall apart—and how much influence exchanges still have. Was this a one-off, or a sign of deeper cracks in the altcoin market?

Sound off in the comments. Can $OM recover—or is the damage done? #RWA #Binance