OM Token’s Sudden Collapse: Is There a Role for Exchanges?

Jakarta, Pintu News – On April 13, the crypto market was shocked by the loss of billions of dollars in market value due to the price crash of the OM token, a utility token from the Mantra ecosystem. Within an hour, OM plummeted 98%, from nearly $6 to just $0.40, before recovering slightly and trading around $0.7941. The token’s market capitalization plummeted by 88.85% to $679 million.

Main Causes of Collapse

John Mullin, co-founder of Mantra, revealed that the collapse was triggered by “reckless position closures” by centralized crypto exchanges. According to him, the timing and depth of the collapse indicate a very abrupt closing of account positions without sufficient warning or notice.

Mullin added that this incident occurred during hours when market liquidity was low, which suggests negligence or even possible market manipulation by the centralized exchange. Mullin emphasized that Mantra’s team was not involved in causing this collapse.

“The MANTRA Chain Association, core advisors, or MANTRA investors who sold the tokens are not involved. The tokens are still locked and follow the published vesting period. OM Tokenomics is intact, as we shared last week in our latest token report,” Mullin said. Their token wallet address can also be viewed online.

Read More: Market Volatility: Mantra Token Plummets 90% in an Hour, Here’s the Explanation

Speculation and Community Reaction

Maja, a veteran in the crypto space, criticized Mullin’s non-specific accusations. “Where are the specifics, Mullin? We are not in the 2016 crypto era. Which exchanges? How many accounts? What triggered the closure? Blaming ‘them’ entirely is often a PR ploy or shows that the OM team is very inexperienced… It has to be better for the community and this space,” Maja said.

The wider crypto community has expressed similar discontent, with some users pointing out that the $OM collapse follows a familiar pattern of systemic repositioning by influential players who not only understand market mechanics, but also the trust architecture underpinning investment decision-making.

Analysis and Recovery Potential

Prior to the collapse, blockchain analysis firm Spot On Chain had reported unusual whale movements. Despite the chaos, a small percentage of investors saw this as potential.

Despite OM’s drastic drop in value, its trading volume increased by over 3000%, indicating a surge in token purchases at lower prices. This influx suggests that while many lost large sums, there are also those betting on OM’s recovery.

Conclusion

The OM token’s sudden collapse raises many questions about the role of centralized crypto exchanges in market dynamics. Further investigation and transparency from all parties involved will be crucial to restoring investor confidence and ensuring the stability of crypto markets in the future.

Also Read: Ripple (XRP) Movement and Potential Correction: What Crypto Investors Need to Watch Out for?

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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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News Flash. Mantra Investigates Potential Exchange Role in Sudden OM Token Crash. Accessed on April 14, 2025
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