OM Plummets: A Sudden Crash or Market Manipulation?
The OM token has experienced a dramatic decline, dropping over 70% in a short period. This sudden crash has led to significant liquidations, with over $28.61 million in OM being liquidated, primarily from long positions. Even with 1x leverage, it's estimated that positions would have been completely wiped out.
MANTRA's Response
According to MANTRA, the crash was caused by reckless forced liquidations initiated by centralized exchanges during periods of low liquidity. The project's official blog post suggests that the abrupt closure of account positions without sufficient warning or notification indicates negligence or possible market manipulation on the part of the exchanges.
Key Points
- Reckless liquidations*: Centralized exchanges may have initiated forced liquidations without proper oversight, leading to market dislocation.
- Low liquidity*: The crash occurred during low liquidity hours, exacerbating the price drop.
- Negligence or manipulation*: MANTRA believes that the exchanges' actions may have been negligent or even intentional, harming the project's and investors' interests.
Conclusion
MANTRA emphasizes that the market misalignment was not caused by the team but rather by the actions of centralized exchanges. The project is working closely with these exchanges, but it's clear that more oversight is needed to prevent similar incidents in the future.
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will you buy the dip and wait ?
