• Mantra’s OM token likely crashed by over 90%.

  • Losing around $5 billion in market cap in less than an hour.

  • The team claims the crash was due to “reckless forced liquidations” by centralized exchanges, especially during low-liquidity hours.

  • Over $74 million in liquidations occurred, impacting many traders, with some positions losing more than $1 million each.

  • Mantra denies any team involvement and is investigating, but past allegations of market manipulation add complexity to the situation.

  • This event raises concerns about RWA token stability and exchange practices.

Mantra’s OM token, a key player in the real-world asset (RWA) sector, plummeted over 90% in value within an hour, erasing approximately $5 billion in market capitalization. This article delves into the details of the crash, the team’s response, market reactions, and the broader implications for decentralized finance (DeFi).

Understanding Mantra Chain

Mantra Chain is a Layer 1 blockchain designed specifically for tokenizing and trading real-world assets, such as real estate, art, and commodities, in compliance with regulatory requirements. This focus on RWAs positions Mantra as a bridge between traditional finance and DeFi, attracting institutions and developers. The native token, OM, serves as the governance and staking token for the network, with a total supply of 1.81 billion and a circulating supply of 969.48 million as of the crash date.

Prior to the crash, OM had been a standout performer in 2024, gaining over 400% in value, which drew significant attention from investors. This growth was partly fueled by partnerships, such as with Dubai’s DAMAC Group in January 2025 to tokenize $1 billion in assets, and integrations like Google Cloud, highlighting Mantra’s ambition in the RWA space.

The Crash

The crash began at approximately 2:28:32 am (UTC+8) on April 13, 2025, during low-liquidity hours, typically early Sunday morning in Asia.

Within an hour, the OM token’s price dropped from $6.30 to below $0.40, representing a 93% decline. This rapid fall triggered over $74.7 million in liquidations within 24 hours.

The market capitalization shrank from nearly $6 billion to $683 million, a loss of over $5 billion, marking one of the steepest single-day declines in crypto this year.

Team’s Response

Mantra’s co-founder, John Patrick Mullin, addressed the situation via an X post, attributing the crash to “reckless forced closures initiated by centralized exchanges on OM account holders.”

He argued that the timing, during low-liquidity hours, suggested “a degree of negligence at best, or possibly intentional market positioning” by the exchanges, with positions closed “without margin calls or notice.”

Guys let's get a couple things straight:– The TG was not deleted.– The Team tokens all remain in custody, verifiable at this address – mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam– We are actively figuring out why these massive forced liquidations occurred and will provide…

— JP Mullin ( , ) (@jp_mullin888) April 13, 2025

An official statement from the Mantra Chain reinforced this, stating, “Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team.”

MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…

— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025

The team also denied “rug pull” allegations, verifying that team tokens remain locked and verifiable on-chain, and committed to providing further updates. They emphasized transparency, stating, “We will do everything in our power to convey accurate, timely information as soon as we have it”.

Historical Context and Past Allegations

Mantra’s history includes past controversies that add complexity to the current situation. In December 2024, community members accused the team of manipulating token prices and changing airdrop vesting schedules.

Additionally, on April 2, Mantra DAO burned 21 million OM tokens, reducing the circulating supply by approximately 2.17% (from 969.48 million to 948.48 million OM). While the team stated this was unrelated to the crash, it may have influenced market dynamics leading up to the event, given the updated tokenomics since October 2024.

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