| Key Points: – Mantra’s OM token plummeted from over $6 to $0.40 within hours, triggering market panic amid rumors of insider activity. – Analysts accused the team of market manipulation and discounted OTC deals, but co-founder John Patrick Mullin denied insider trading. |
A dramatic sell-off in Mantra’s OM token sent shockwaves through the crypto market early Monday, as the price plunged more than 90% within hours — reminiscent of Terra’s infamous LUNA collapse.
The crash unfolded without a clear external catalyst, prompting widespread speculation, accusations, and conspiracy theories within the crypto community.
Mantra’s OM Token Plunges 90% Amid Market Chaos
OM, the governance and transaction token of Mantra — a blockchain platform focused on tokenizing real-world assets (RWAs) like real estate and commodities — dropped from $7 to around $0.4 in a single trading window, causing substantial losses for investors and traders.
The sell-off began late Sunday when on-chain data revealed that a wallet linked to the Mantra team transferred 3.9 million OM tokens to the OKX exchange.
The triggered concerns given that the team reportedly controls up to 90% of the token’s supply with the possibility of insider-led dumping. At the time of writing, the token has yet to reclaim its $0.7 price.
Prominent crypto analysts, including Sjuul from AltCryptoGems, flagged long-standing trust issues within the OM community, accusing the team of manipulating the market, quietly altering token allocations, and failing to deliver on promised airdrops. Allegations also emerged of over-the-counter (OTC) deals in which OM tokens were sold at steep discounts of up to 50%.
As prices slid, OTC participants rushed to exit, triggering stop-loss orders and liquidating leveraged positions. The rapid chain reaction unfolded during a low-liquidity window over the weekend, accelerating the market’s downward spiral.
Insider Activity Spark Panic Selling, Is It True?
In response, Mantra denied any wrongdoing. Co-founder John Patrick Mullin dismissed claims of insider trading and reassured users that the team’s tokens remained untouched.
Mullin attributed the crash to “reckless forced closures” by centralized exchanges, which he claimed liquidated large OM positions without warning. “The timing and depth of the crash suggest that a very sudden closure of account positions,” Mullin said on X, formerly Twitter.
Mullin also denied rumors that the Mantra team had deleted its Telegram channels and clarified that ongoing operations were intact.
Further blockchain analysis showed that since April 7, over 43 million OM tokens — previously valued at $227 million — had been deposited to exchanges, representing roughly 4.5% of the circulating supply. Two of the wallets involved were labeled as belonging to Laser Digital, a known strategic investor in Mantra DAO.
The previous Mantra had a strong year. In January, it partnered with UAE-based conglomerate DAMAC Group to tokenize $1 billion worth of real-world assets, including property, data centers, and ventures.
In February, it secured a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling operations across brokerage, consulting, and exchange services in the UAE.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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