Kristoffer oersoe

$OM
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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.
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MANTRA's Make-or-Break Moment Can They Bounce Back?

Chapter 1
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Tokenomics – the economic rules that govern a cryptocurrency – are crucial for understanding its behavior and value.
The OM token's story is particularly interesting, as it involves a significant shift from one economic model to another.
The OM token's journey began on the Ethereum blockchain, where it was initially launched as an ERC-20 token.
To put it simply, an ERC-20 token is a standard type of token that's compatible with the Ethereum network.
Think of it like a digital asset built to fit within a popular and well-established online platform.
In this first phase, the OM token had a fixed supply. This means that there was a maximum, unchangeable number of OM tokens that could ever exist, similar to a limited-edition collectible.
However, as MANTRA prepared to launch its own independent blockchain (the MANTRA Chain), a decision was made to overhaul the OM token's economic structure.
This led to some fundamental changes:
OM transitioned from being an ERC-20 token on Ethereum to becoming the native token of the MANTRA Chain.
This means it became the primary token used to pay transaction fees and participate in the chain's operation, such as staking to secure the network.
The tokenomics shifted from a fixed supply to an inflationary model.
Instead of a hard cap, the number of OM tokens in existence can now increase over time.
This is similar to a central bank printing more money, and the rationale is often to incentivize participation in the network.
The initial total supply of OM tokens was doubled. This means that the number of tokens in existence was significantly increased at the launch of the MANTRA Chain.
MANTRA's team argued that these changes were necessary to ensure the long-term sustainability and functionality of the MANTRA Chain.
For example, the inflationary model was introduced to provide ongoing rewards to the validators who maintain the network.
However, these tokenomics changes also sparked controversy and raised concerns within the community, which we'll delve into later.

Disclaimer: This information is for educational purposes only and is not financial advice. The goal is to help you learn and explore the world of investing, but please remember that all investments come with risks, and there are no guarantees of profit. Conduct your own thorough research and consult a financial advisor before investing. Past performance is not indicative of future results.

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