Mantra Team Denies Insider Sell-Off Claims as its OM Token Wipes Out All its Gains

The Mantra (OM) token collapsed by over 90% yesterday in what many call the most significant crypto crash since the Terra-LUNA crash of 2022. The price of the Mantra’s OM token fell from about $6.3 to an astonishing $0.5. It has lost most of its gains since its meteoric rise from $0.0158 in early 2024. The Mantra crypto crash has shaken the crypto market at a time when investor sentiment was already fragile because of escalating global trade tensions. 

OM, the native cryptocurrency of the Mantra ecosystem, nosedived as much as 90% in a few hours, and the crash has allegedly wiped out $6 Billion in value for the token. The steep price fall of the Mantra crypto crash has increased concerns among investors and the broader crypto community, prompting investigations into potential causes, including forced liquidations on certain exchanges.

What Caused the Mantra Crypto Crash Today?

The Mantra team has denied any internal dumping activities, attributing the Mantra crypto crash to external factors. This catastrophic event that erased 90% of the OM token’s market cap in 4 hours has raised concerns about the stability of the market and the resilience of DeFi projects. It has also drawn parallels to the infamous LUNA crash and has left investors questioning the inherent volatility and risks associated with the crypto market. 

The Mantra project is now embroiled in controversy as investors allege an insider dumped its holdings. The Mantra crypto crash is one of the steepest single-day drops in crypto history, and many say an insider or the project team offloaded tokens over-the-counter and severed investor communication by deleting Mantra’s Telegram group. 

Mantra’s X account says massive reckless liquidations triggered the Mantra crypto crash. Investors might soon proceed to take legal action. Mantra’s response, or lack of a proper response, has shaken the community’s trust in DeFi projects that bridge traditional assets. While the situation is unprecedented, Mantra co-founder John Patrick Mullin has said that the massive liquidations were on one specific exchange that he has not named yet. 

Source: CoinMarketCap

What is the Mantra Crypto Currency?

Mantra (OM) is a cryptocurrency associated with the MANTRA DAO, a decentralized autonomous organization focusing on community-governed finance. The platform aims to provide DeFi services, including staking, lending, and governance, by leveraging blockchain technology to offer users financial control and transparency. 

MANTRA DAO’s native token, OM, is integral to its ecosystem, facilitating various functions such as voting on proposals and earning rewards through staking.​ Before it became infamous because of Sunday’s Mantra crypto crash, it was known for its partnerships with Google Cloud and Dubai’s DAMAC Group. Mantra recently signed a $1 Billion deal with DAMAC to tokenize the investment conglomerate’s assets. 

Conclusion

The Mantra crypto crash underscores the inherent volatility and risks associated with cryptocurrency investments.​ It has not only erased billions in market value but also shattered investor confidence in DeFi projects promising transparency and stability. Whether this collapse was caused by reckless liquidations, insider actions, or market manipulation, the Mantra crypto crash highlights the urgent need for clearer regulations and more robust safeguards in the crypto space. 

Investors are now watching closely as investigations unfold, hoping for accountability and lessons to prevent future disasters. 

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.