The cryptocurrency Mantra (OM) gained attention in recent days after a devaluation that reached 90% in 24h. Many believed it was yet another “rug pull” in the market, when developers abandon the project — taking investors' money with them.
Despite allegations of being a scam, cryptocurrency exchanges did not suspend trading of the OM token and it is still possible to trade it on major digital asset platforms.
This Tuesday (15), the OM token jumps 19%, trading at $0.82 around 12:21 PM. However, for the week, the price loss reaches over 84%.
So, what to do now: buy more, sell, or hold the position in Mantra (OM)?
Mantra (OM): the day after the crisis
Luiz Pedro Andrade de Oliveira, cryptocurrency analyst at Nord Research, commented to the Crypto Times about a report from the analysis house signed by him last Monday (14).
“In light of recent movements, we do not see an allocation opportunity at the moment. We do not recommend buying Mantra (OM) at this price, given the current configuration of the asset,” says the analyst.
Additionally, at the request of the report, Oliveira adds: “my suggestion for those who still have Mantra is to sell, taking the loss. The ‘game’ of tokenization (RWAs) primarily relies on credibility. It’s hard for Mantra to regain credibility with the major players in the traditional market after what happened.”
The Nord analyst also explains that, before the crisis, the firm had already liquidated its position in OM on February 15 of this year, with a profit of 941%, according to the firm's report. “What motivated our exit from the asset was the significant appreciation movement without apparent reason,” he says.
Outdated RWA
Going back a few steps, Mantra is a first-layer blockchain (layer 1 or L1) focused on the tokenization of real-world assets (RWAs).
Thus, the network gained visibility by closing a $1 billion deal with Damac Group, an investment conglomerate, to enable financing for real estate and data centers in the Middle East.
Furthermore, the company had obtained regulatory license in Dubai (VARA) in February of this year and has been positioning itself as one of the main names in the RWA sector.
The expectation was that Mantra would become one of the protagonists of global tokenization — and now, the project struggles to regain trust.