Mantra ($OM ) Accused of Faking Liquidity to Climb Rankings
Mantra (OM), once a rising star in the crypto world, is now under fire for allegedly faking liquidity to boost its market cap ranking. Wha appeared to be a success story may have been a carefully staged illusion.
*A Market Built on Illusion
According to The Chopping Block podcast, Mantra and its market maker partners reportedly engaged in wash trading by circulating OM tokens between controlled wallets. This created the illusion of active trading, even though less than 1% of OM’s total supply was truly available for the public to trade.
The result? OM’s fake volume helped it rise into the top 25 on sites like CoinMarketCap and CoinGecko — attracting investors and exchange listings under false pretenses.
*Collapse Came Quickly
The facade came crashing down when a major holder tried to sell their tokens. Within 90 minutes, OM’s price collapsed by over 90%, revealing the project’s lack of real liquidity and exposing how shallow the actual market was.
*Why No One Noticed
Crypto ranking platforms often rely on self-reported data from projects, which can be manipulated. Without independent verification, tokens can appear far more liquid than they really are — creating a dangerous illusion for traders and investors.
*What Can Be Done?
The Mantra episode has sparked new conversations around transparency in crypto:
1. Disclosure of Market-Making Deals
Projects should be required to disclose relationships with market makers, including trading incentives and token allocations.
2. On-Chain Proof of Liquidity
Exchanges and data providers could demand on-chain verification of token distribution and ownership before listing a project.
*Outlook
The Mantra case isn’t just a scandal — it’s a wake-up call. In a space moving at breakneck speed, surface-level data can be dangerously misleading. The industry must push for greater transparency and data integrity to truly protect investors
