Mantra (OM) Crashes 90% in 24 Hours — What Triggered the Massive Collapse?

Updated

April 14, 2025

Gambar Mantra (OM) Crashes 90% in 24 Hours — What Triggered the Massive Collapse?

Jakarta, Pintu News – In less than 24 hours, the price of the Mantra token plummeted sharply from around $6.3 to below $0.50, wiping more than $6 billion off the market capitalization. This incident sparked concern in the crypto community, with speculation regarding a potential rug pull and uncontrolled forced liquidation.

Check out the full analysis below!

Causes of OM Price Crash: Forced Liquidation or Market Manipulation?

Guys let's get a couple things straight:

– The TG was not deleted.
– The Team tokens all remain in custody, verifiable at this address – mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam
– We are actively figuring out why these massive forced liquidations occurred and will provide…
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025

OM’s drastic price drop was allegedly triggered by many forced liquidations on a centralized exchange (CEX). Mantra co-founder John Patrick Mullin stated that a “reckless forced closure” by the CEX caused the price drop, rather than the actions of the Mantra team itself. Mullin added that this incident occurred during a time of low liquidity, increasing its impact on the price.

However, on-chain data shows that approximately 3.9 million OM tokens were sent to the OKX exchange from wallets allegedly associated with the Mantra team before the drop. This transaction sparked concerns of a potential massive internal sell-off. Although the Mantra team denied involvement in the price drop, the community remains vigilant of possible market manipulation.

Also read: XRP Price Prediction April 14, 2025: After Golden Cross, Will it Reach Rp42,500?

Community Reaction and Team Mantra’s Response

Seems like the Mantra team were holding a large amount of supply and market sold everything.

Team needs to address this or $OM looks like it could head to zero.

Biggest rug pull since LUNA/FTX?? https://t.co/fU0Hk0uOGr pic.twitter.com/xSz5zP1QrH
— Gordon (@AltcoinGordon) April 13, 2025

After the price drop, the crypto community compared this event to the collapse of Terra and FTX. Some community members called it the “biggest rug pull since LUNA/FTX”. The Mantra team immediately responded by stating that all the team’s tokens are still in custody and have not been sold. They also provided a wallet address for public verification.

However, the Mantra team’s action of locking down their official Telegram group during the crisis added suspicion among investors. Although the team claims the group was not deleted, many feel that the lack of open communication exacerbated the situation. The team promised to hold a community discussion on platform X to discuss this incident further.

Impact on the Project and the Future of Mantra

According to Cointelegraph, before this incident, Mantra had made significant strides in the Middle East, including an IDR 17 trillion asset tokenization deal with DAMAC and obtaining a license from the Dubai Virtual Asset Regulatory Authority (VARA). However, OM’s drastic price drop raises questions about the stability and trust in the project.

Some analysts noted that OM’s diluted full valuation reached nearly IDR161.5 trillion, while its total value locked (TVL) was only around IDR221 billion. This imbalance highlights the potential for overvaluation and high liquidity risk. Mantra’s future now depends on the team’s ability to restore investor confidence and stabilize their ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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