The Mantra (OM) token crash in mid-April 2025 has raised significant concerns within the crypto community, with many questioning whether it was a rug pull or a result of other factors.

🧨 What Happened?

On April 13, 2025, the OM token's price plummeted by over 90%, dropping from approximately $6.30 to below $0.50 in just a few hours. This sudden decline erased more than $6 billion in market capitalization and led to over $72 million in liquidations.

🧾 Allegations and Concerns

The abrupt crash led to widespread speculation about a potential rug pull, a scenario where project insiders dump their tokens, leaving investors with worthless assets. Some analysts pointed to large OM token transfers to centralized exchanges shortly before the crash, suggesting possible insider involvement.

🛠️ Mantra's Response

John Patrick Mullin, co-founder of Mantra, addressed the situation by denying any insider misconduct. He attributed the crash to "reckless forced closures" initiated by centralized exchanges during low-liquidity periods, leading to a cascade of liquidations.

To restore confidence, Mantra announced plans to:Buy back OM tokens to support the token's value,Utilize a $109 million ecosystem fund to aid in recovery efforts

🔍 Current Status

Following the crash, OM's price experienced a brief rebound, rising by nearly 200% to around $1.10. However, skepticism remains, with some community members drawing parallels to previous crypto collapses like Terra's LUNA. $OM