2/6
Okay, folks, let's talk about a bumpy ride.
In April 2025, MANTRA's very own OM token took a massive hit, with its price plummeting by around 90% in just a few hours.
That's the kind of drop that makes your stomach do flips! This crash wiped out billions of dollars in market value, and understandably, it shook investor confidence to its core.
MANTRA's team pointed the finger at "reckless" forced liquidations by centralized exchanges (CEXs), especially during a weekend when trading activity tends to be lower.
Basically, when some traders who had borrowed money to trade OM couldn't meet their obligations, the exchanges automatically sold off their OM to cover the debts, and MANTRA argues this happened in a way that drove the price down further than it should have.
But here's the thing: while those liquidations definitely played a role, there were other factors at play,creating a perfect storm.
The Tokenomics Twist: Right before MANTRA launched its own blockchain the mainnet, they overhauled the OM token's economics.
This involved doubling the number of tokens in existence and switching to an inflationary model, meaning the number of tokens could keep increasing over time. Some analysts think this made the token more vulnerable to price drops.
Liquidity Limbo: The OM token market wasn't exactly what you'd call liquid.
In the financial world, liquidity refers to how easily you can buy or sell something without causing big price swings.
In OM's case, there weren't enough buyers to absorb the sudden wave of selling from those liquidations, which made the price crash even harder.
Concentration Concerns: There were worries that a relatively small number of people held a large chunk of the OM tokens. This kind of token concentration can make a cryptocurrency more susceptible to price manipulation
In Chapter 3, we will look at MANTRA's make-or-break moment and whether they can bounce back.
please Follow and like means a lot to me.
MANTRA's Make-or-Break Moment Can They Bounce Back?