Crypto merchants had been reminded of Terra’s LUNA early Monday as stylish real-world asset upstart Mantra’s OM token dropped 90% inside hours on no sudden catalyst — with conspiracy theories and allegations working abound amongst crypto circles.
OM plunged from over $6 to simply over 40 cents late Sunday to early Monday in sometimes low liquidity hours for the crypto market — the place outsized volumes can set off huge worth actions in both course.
“We need to guarantee you that MANTRA is basically robust,” the group stated in an X submit following the worth drop. “Right this moment’s exercise was triggered by reckless liquidations, not something to do with the mission. One factor we need to be clear on: this was not our group. We’re trying into it and can share extra particulars about what occurred as quickly as we will.”
Mantra lets customers tokenize real-world belongings (RWAs) like actual property and commodities, enabling compliant digital investments in tangible belongings. Its OM token facilitates transactions and governance.
In January 2025, Mantra partnered with DAMAC Group, a UAE-based conglomerate, to tokenize $1 billion in belongings, together with actual property, hospitality, and knowledge facilities.
OM was among the many greatest market gainers in 2024, rising greater than 400% on comparatively low public dialog on crypto-related social media – which intrigued merchants and buyers alike on the energy of the transfer.
In the meantime, co-founder John Patrick Mullin alleged the motion was seemingly resulting from exchanges closing OM positions, which impacted all market publicity.
“We’ve got decided that the OM market actions had been triggered by reckless compelled closures initiated by centralized exchanges on OM account holders,” Mullin stated in an X submit. “The timing and depth of the crash counsel {that a} very sudden closure of account positions was initiated with out ample warning or discover.”
He additional alleged “intentional market positioning taken by centralized exchanges.”
Sherpas, OMies, and broader crypto neighborhood,
First off, the group and I significantly admire the help that we now have acquired over the previous a number of hours, which we consider is a testomony to the robust help MANTRA has amongst its buyers and neighborhood.
We’ve got decided that…
— JP Mullin (
,
) (@jp_mullin888) April 13, 2025
OM-tracked futures recorded over $50 million in liquidations on the lengthy aspect, a file determine for the tokens. Open curiosity slumped from $345 million to simply over $130 million, indicating a fast exit for unsettled futures bets.
Some distinguished crypto voices aren’t shopping for that narrative, nonetheless, with scores of dismissive replies beneath Mullin’s posts.
OKX founder Star Xu added in a response to a separate submit that flagged over $220 million in token deposits to exchanges earlier than the worth crash.
“It’s an enormous scandal to the entire crypto business. The entire onchain unlock and deposit knowledge is public, all main exchanges’ collateral and liquidation knowledge will be investigated. OKX will make all the reviews prepared,” Xu stated.
It’s an enormous scandal to the entire crypto business. The entire onchain unlock and deposit knowledge is public, all main exchanges’ collateral and liquidation knowledge will be investigated. OKX will make all the reviews prepared! https://t.co/YYnb1ByUGL
— Star (@star_okx) April 14, 2025