Another Major Crypto Crash: OM Coin Plummets from $6 to Mere Cents Within an Hour
The reason behind this sudden crash was suspicious activity by the coin’s team, which triggered panic among investors. As a result, many people started withdrawing their money rapidly. OM Coin lost a market cap of $5 billion, dropping down to just a few million dollars.
Previously, in 2022, a similar catastrophic crash happened with Luna Coin, which dropped from $116 all the way down to $0.00008. The cause was its own stablecoin, which was algorithmically tied to Luna. When the price of the stablecoin dropped, the system tried to maintain stability by minting more Luna coins. As a result, the supply exploded from 380 million to a staggering 6.5 trillion coins.
That crash was so devastating that it shook the entire crypto market. Even Bitcoin lost half of its value. Overall, the Luna collapse wiped out nearly $60 billion in investor wealth from the market permanently.
