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Token's Value Plummets by 90%: Mantra (OM) Suffers Major Slump, Accuses Exchange of Liquidation Move

cryptocurrency's OM token for MANTRA suffered a dramatic 90% plunge, according to claims of mandatory position closures by exchanges, resulting in an elimination of nearly $3 billion in market value amid speculation about suspicious transactions prior to the crash.

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Token's Value Plummets by 90%: Mantra (OM) Suffers Major Slump, Accuses Exchange of Liquidation Move

A Deep Dive into MANTRA's Catastrophic Token Crash

MANTRA's OM Token Plummets: A Breakdown

In the cryptocurrency world, hype can lead to heights, but it can also lead to devastating lows. On April 13, 2025, MANTRA's native token OM experienced such a dramatic tumble, losing 90% of its value in a matter of hours.

The Slide: From $6.30 to Below $0.50

The price drop from $6.30 to a staggering low of $0.50 was swift, tidal, and brutal. The market data indicates that this catastrophic event unfolded in approximately 90 minutes during typically low-liquidity trading hours – Sunday evening UTC and early morning Asia time.

The Blame Game: Centralized Exchanges under the Microscope

Immediately following the crash, MANTRA co-founder John Patrick Mullin took to social media platforms to voice his concerns, placing the blame squarely on "reckless forced closures" initiated by centralized exchanges on OM account holders. Mullin further suggested that these closures were sudden, without warning or notice, implying a possible intentional market positioning by these exchanges.

Looking back, blockchain data shows a series of unusual token movements leading up to the collapse. For instance, analytics platform Lookonchain reports that at least 17 wallets deposited 43.6 million OM tokens (a significant 4.5% of the circulating supply) into crypto exchanges starting April 7. Moreover, Spot On Chain reported that large OM holders moved 14.27 million tokens to the crypto exchange OKX three days before the crash. These holders had purchased a substantial 84.15 million OM for a whopping $564.7 million in March, only to witness an estimated potential loss of $406.3 million following the sudden price drop.

Ripple Effects in the Market

The impact on the market was swift and brutal, with OM-tracked futures recording over $50 million in liquidations on long positions alone. The open interest in OM futures contracts dropped from $345 million to just over $130 million, suggesting a panicked exit by traders.

Mantra's Response and Future Outlook

In the midst of the ensuing chaos, MANTRA moved swiftly to reassure its community that its project remains fundamentally strong. The leadership denies theories of team selling or a "rug pull" and instead attributes the crash to "reckless liquidations" by exchanges. The project announced a community call to address the situation further and provide more information.

In an effort to restore investor confidence, MANTRA announced a 160 million OM token burn, including 50% from the founding team.

All in all, MANTRA served as a stark reminder of the volatility in the crypto market, particularly during low-liquidity hours. The incident highlights the potential impact of large sell orders and underlines the importance of exchange liquidity policies. As always, it pays to stay vigilant in the ever-changing world of cryptocurrency.

References:

  1. MANTRA’s Leadership Links 90% Crash to “Reckless Forced Closures by Centralized Exchanges” (2025, April 13). Coin Telegraph. https://cointelegraph.com/news/mantra-s-leadership-links-90-crash-to-reckless-forced-closures-by-centralized-exchanges
  2. MANTRA’s Crash: A Deeper Look into the Systemic Risks (2025, April 14). CoinDesk. https://www.coindesk.com/business/2025/04/14/mantra-s-crash-a-deeper-look-into-the-systemic-risks/
  3. Despite the MANTRA's OM token's catastrophic 90% plunge on April 13, 2025, the project's leadership asserts that it retains a strong foundation, disputing rumors of team selling or a "rug pull."
  4. The declining trends prior to the MANTRA crash included large token movements into exchanges, with over 43.6 million OM tokens deposited between April 7 and the crash, representing a significant 4.5% of the circulating supply.
  5. The market impact was substantial, with over $50 million in liquidations on long positions of OM-tracked futures contracts, and a drop in open interest from $345 million to $130 million, indicating a mass exit by traders.
  6. Amid the chaos, MANTRA announced a token burn of 160 million OM tokens, including 50% from the founding team, as an attempt to restore investor confidence.
  7. As a result of MANTRA's collapse, concerns about the potential effect of large sell orders during low-liquidity hours and the importance of exchange liquidity policies have been highlighted in the cryptocurrency finance sector, underscoring the need for vigilance in the quickly-evolving technology landscape.
Cryptocurrency OM from MANTRA suffered a drastic 90% drop, with exchanges reportedly forcing position closures. This market plunge, which erased a massive amount of worth, occurred amidst a contentious dispute over the token's movement before the crash.
Cryptocurrency MANTRA's OM plummeted 90% following claims of exchange-induced liquidations, causing a staggering loss of value worth billions. The decline transpired amidst uproar over questionable token transactions prior to the crash.
Token value of MANTRA's OM plummeted by 90% following alleged forced position closures by exchanges, leading to a massive loss of approximately billions in market value. The event occurred amidst questions and controversy surrounding the movements of the token prior to the crash.

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