#Mantra $OM has cited broader industry factors as contributing to the recent collapse of its OM token, with CEO John Mullin calling on exchanges to reassess their leverage policies.
Decentralized finance (DeFi) platform Mantra has called for industry-wide cooperation to reduce investor risks in the aftermath of its OM token crash.
On April 30, Mantra published its latest update since the sudden collapse of its OM token, claiming that the incident was “bigger than Mantra.”
“Liquidation cascades could happen to any project in the crypto industry,” Mantra CEO John Mullin warned in the post, pointing to the role of “aggressive leverage positions” on exchanges as a broader threat to investor safety.
OM crash is result of “aggressive leverage positions”
Mullin pushed back on the idea that the broader industry, including exchanges, should be blamed for the OM crash, saying that any listed project could experience a similar downturn.
“To be specific, exchange policies that allow investors to take aggressive leverage positions on top of their own tokens are enormously risky,” said Mullin.
