$OM collapsed by 90% in one hour with $5.5 billion in value evaporated. Here’s how and why this could happen:#
It all started yesterday when a possible member of the $OM team deposited 3.9 million OM tokens on OKX. It was well known in the crypto space that the OM team holds nearly 90% of the total supply. Over the past year, they used market manipulation (MM) to inflate the price of their token. Not only that, but they also modified their tokenomics and even delayed the community airdrop.
After the deposit on OKX, the selling started to happen today. But why a 90% crash?
This was due to OTC (Over-The-Counter) transactions. It was reported that OM made several OTC transactions at a discount of 50% or more. Once the price fell by 50%, all OTC whale holdings went into loss. This triggered a panic sell-off as everyone tried to get out first. This situation caused a cascade of liquidations and a massive sell-off.
That’s why I always say to do your own research before investing.