š„š„š„OM COIN IN WHAT CAUSED THR CRASH ?
Several factors contributed to this sudden downturn:
Large Token Transfers: On-chain data revealed that 17 wallets moved a combined 43.6 million OM tokens (valued at about $227 million) to exchanges shortly before the crash. This raised concerns about potential insider activity. BeInCrypto+2
1 : Forced Liquidations: Many traders had used OM tokens as collateral for loans. As the price began to fall, these positions were automatically liquidated by exchanges, exacerbating the price decline.
2 : Low Liquidity Period: The crash occurred during a period of low market liquidity, which amplified the impact of large sell orders.
3 : Market Panic: The sudden price drop led to widespread panic among investors, leading to a cascade of sell-offs.
š ļø Recovery Efforts
In response to the crash, MANTRA's founder, John Patrick Mullin, announced plans to burn 150 million OM tokens from his personal allocation to reduce supply and potentially stabilize the price.
Additionally, the team is considering a token buyback program and reallocating a $109 million ecosystem fund to support the OM token and rebuild investor confidence.