𝙄𝙎 𝙈𝘼𝙉𝙏𝙍𝘼 𝙏𝙃𝙀 𝙉𝙀𝙓𝙏 𝙇𝙐𝙉𝘼?

As The recent collapse of Mantra’s $OM token—plummeting over 90% in a single day—has drawn comparisons to Terra’s $LUNA crash in 2022. However, while the price action is similar, the underlying causes differ significantly.

What Happened to Mantra?

On April 13, 2025, $OM price fell from over $6 to below $0.50 within an hour, erasing more than $6 billion in market capitalization. This sudden drop sparked panic and led to allegations of a potential rug pull. Reports suggested that 17 wallets moved a combined 43.6 million OM tokens—worth about $227 million at the time—to exchanges before the crash. However, Mantra CEO John Mullin denied any insider sales, attributing the crash to forced liquidations by centralized exchanges during a period of low market liquidity.

Is Mantra the New LUNA?

While both Mantra and LUNA experienced rapid price collapses, the mechanisms behind their crashes differ. LUNA's downfall was tied to the failure of its algorithmic stablecoin, UST, which led to a death spiral as the system attempted to maintain its peg. In contrast, Mantra's crash appears to be linked to large token transfers and subsequent forced liquidations, rather than a flawed stablecoin mechanism.

Conclusion

Although Mantra's OM token experienced a dramatic price drop reminiscent of LUNA's collapse, the underlying causes are distinct. Mantra's situation seems to stem from large token movements and forced liquidations, whereas LUNA's crash was due to the failure of its algorithmic stablecoin system. Investors should remain cautious and monitor developments closely.