MANTRA blockchain native token, OM token, plummeted over 90% on April 13, 2025, erasing billions in market value within hours. The price crashed from around $6 to below $0.50, leaving investors reeling and sparking heated debates across the crypto community. MANTRA’s team, led by co-founder John Patrick Mullin, has pointed the finger at centralized exchanges (CEXs), blaming “reckless forced liquidations” during low-liquidity hours for the collapse.
Meanwhile, allegations of insider dumping and rug-pull suspicions have swirled, though the team firmly denies any wrongdoing.
What Happened?
The crash began late Sunday evening, a time when trading volumes are typically thin, making markets vulnerable to sharp swings. According to Mullin, a large OM investor triggered a “massive forced liquidation” on an unnamed CEX, setting off a cascade of sell orders that obliterated the token’s order books. The result? A near-total wipeout of OM’s value, with the token’s market cap dropping from $6 billion to a fraction of that in just four hours.
The fallout wasn’t limited to OM. Other tokens, including ACT, TST, MASK, and LEVER, also suffered steep losses, fueling speculation of broader market manipulation or systemic issues within CEX operations. The crypto community erupted with theories, ranging from coordinated dumps to exchange negligence, as traders scrambled for answers.
MANTRA’s Response: “Not a Rug Pull”
Facing a firestorm of criticism, MANTRA’s team moved quickly to address the chaos. In a series of X posts, Mullin rejected claims of insider selling, emphasizing that team-controlled tokens remain locked and verifiable on-chain. “The TG [Telegram] was not deleted. Team tokens are still in custody,” he wrote, providing a wallet address to back up the claim. He also called for greater oversight of CEXs, arguing their unchecked power can devastate projects and investors alike.
MANTRA’s official statement echoed this, attributing the crash to external liquidations rather than internal foul play. “We are actively investigating and will share more details soon,” the team promised, urging calm amid the panic. They also highlighted their commitment to transparency, noting OM’s circulation since August 2020 as evidence of their long-term vision.
Community Backlash and Allegations
Despite MANTRA’s assurances, skepticism runs high. Some traders point to reports that the team controls up to 90% of OM’s circulating supply, raising red flags about centralized control and potential price manipulation. A wallet allegedly linked to the team deposited 3.9 million OM tokens to OKX before the crash, fueling accusations of a coordinated dump. Critics have drawn parallels to infamous collapses like LUNA and FTX, with one X user calling OM “the LUNA of this cycle.”
Others argue the blame lies with CEXs. Posts on X suggest exchanges like Binance and OKX initiated risk control measures, possibly exacerbating the sell-off. One user claimed 43.6 million OM tokens—4.5% of the supply—were moved to CEXs by 17 wallets, including two tied to strategic investor Laser Digital, before the dump. Whether this reflects negligence or deliberate action remains unclear, but it’s amplified calls for decentralized alternatives and stricter exchange oversight.
CEXs Under Fire
MANTRA’s accusations have put CEXs in the hot seat. Mullin described the liquidations as “negligence or possible market manipulation,” arguing they occurred without warning during a vulnerable market window. This isn’t the first time exchanges have faced scrutiny—similar incidents have exposed the risks of opaque operations and over-leveraged positions. Some exchanges have launched investigations, but none have publicly commented on the OM debacle as of now.
The episode has reignited debates about the crypto industry’s reliance on centralized platforms. With billions wiped out, investors are questioning whether CEXs prioritize profits over market stability. “Demand transparency,” one X user urged, warning that blame-shifting without addressing internal vulnerabilities is a red flag.
What’s Next for OM and MANTRA?
For now, OM’s price remains in the gutter, hovering below $0.50 with no clear signs of recovery. MANTRA insists it’s working on solutions, but the lack of a detailed post-mortem or timeline has frustrated stakeholders. The project, which focuses on tokenizing real-world assets, has previously touted partnerships like one with Dubai-based DAMAC, signaling ambition. Yet, this crash threatens to derail its momentum.
The broader crypto market is watching closely. If MANTRA can’t rebuild trust, OM risks joining the long list of tokens consigned to obscurity. Conversely, a transparent resolution could set a precedent for handling such crises. Either way, the incident underscores the volatility of crypto and the fragile trust between projects, exchanges, and investors.
The OM crash is a stark reminder of the risks in crypto’s high-stakes ecosystem. Centralized control, whether by teams or exchanges, remains a lightning rod for controversy. As one X post put it, “Fruit stands and crypto markets have one thing in common: pick the wrong thing, and you’re stuck with something sour.”
Disclaimer: This article reflects events and sentiments as of April 14, 2025, based on available information. Crypto markets are volatile, and readers should conduct their own research before making investment decisions (NFA, DYOR).
