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The $OM token, the core asset of Layer 1 blockchain Mantra, has been decimated by a precipitous 90% price collapse on Sunday, igniting a firestorm of accusations alleging an insider sell-off that vaporized billions from its market capitalization.
The token, positioned within the burgeoning real-world asset (RWA) tokenization sector and boasting partnerships with tech and real estate giants, plummeted from over $6 to a low of $0.37 in a matter of hours, and currently trades around $0.7096.
The sheer speed and scale of the OM token's demise have triggered widespread suspicion within the cryptocurrency community, with many investors openly accusing the MANTRA team or closely affiliated entities of orchestrating a "rug pull" or a coordinated dump of their holdings. These accusations were amplified by reports that MANTRA's official Telegram channel was briefly locked down, cutting off a vital communication line for concerned investors, though founder JP Mullin denies this happened.
On-chain data analysis has further fueled these allegations. Crypto sleuths reported significant movements of OM tokens to exchanges in the days leading up to the crash, with one analysis indicating that $227 million worth, or 4.5% of the circulating supply, was deposited across various trading platforms by 17 wallets, including some linked to a strategic investor. This pre-crash activity has led many to believe that substantial selling pressure was building before the dramatic price implosion.
MANTRA community - we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025
Mantra's initial response, posted on their X account, attributed the catastrophic price action to "reckless liquidations" by external actors, while vehemently denying any internal involvement. "Mantra community – we want to assure you that Mantra is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project," the team stated. "One thing we want to be clear on: this was not our team. We are looking into it and will share more details about what happened as soon as we can."
This explanation has been met with intense skepticism and anger from the affected investor base. The notion that external liquidations could cause such a swift collapse of a multi-billion dollar market cap token has been widely ridiculed. Prominent on-chain investigators have openly questioned the plausibility of this narrative, and many investors are demanding a thorough and transparent investigation, with some already discussing potential legal recourse.
Sherpas, OMies, and broader crypto community,
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…
OKX CEO Star Xu described the OM token collapse as a major scandal for the entire crypto industry. Xu emphasized that all on-chain data, including unlocking, deposit, collateral, and liquidation activities, is publicly available for scrutiny across major exchanges. He further stated that OKX would be preparing and releasing all relevant reports related to the OM token incident,
