MANTRA (OM) Price: 90% Crash Triggers Recovery Promises Amid Liquidation Storm

MANTRA (OM) Price: 90% Crash Triggers Recovery Promises Amid Liquidation Storm

TLDR

• MANTRA’s (OM) price crashed by 90-94%, dropping from $6.30 to as low as $0.38 before slightly rebounding to around $0.58-$0.73
• CEO John Mullin denied insider dumping allegations and blamed cross-exchange liquidations and mislabeled wallets for the crash
• Binance implemented early risk control measures and cited increased circulating supply and cross-exchange liquidations as key factors
• On-chain sleuth ZachXBT reported that VC backers and known figures allegedly sought loans against OM before the crash
• The team is working on recovery plans including potential token buybacks and burn mechanisms, but nothing is finalized yet

MANTRA’s OM token plummeted by over 90% in a single day, wiping out millions in investor value and leaving traders scrambling for answers. The token, which was trading at $6.30 before the crash, fell to as low as $0.38 before slightly recovering to around $0.58-$0.73 range.

Many traders suffered huge losses, with one prominent investor named JB reporting a $3.3 million loss from his MANTRA position.

The crash happened during “low liquidity hours on Sunday,” according to the MANTRA team. This timing raised questions about potential market manipulation or insider dumping.

Binance, the world’s largest cryptocurrency exchange, quickly issued a statement about the situation. The exchange said it had been monitoring MANTRA’s tokenomics changes and had already implemented risk control measures before the crash.

According to Binance, cross-exchange liquidations played a major role in the price collapse. As leveraged positions failed across various trading platforms, the resulting sell pressure created a domino effect.

Automated trading bots and margin calls further worsened the situation. These automated systems created a feedback loop that accelerated the token’s freefall.

Recovery Promises and Denials

MANTRA CEO John Patrick Mullin addressed the community in an AMA hosted by Cointelegraph on April 14. He denied any insider dumping and promised to provide on-chain proof to support his claims.

“We’re still in the early stages of putting together this plan. The token’s recovery is Mantra’s preeminent and primary concern right now,” Mullin stated during the AMA.

The CEO outlined early recovery plans that may include token buybacks and a burn mechanism. However, he stressed that nothing has been finalized yet.

Mullin also disputed claims about MANTRA’s token distribution. He stated that 90% of OM tokens have been distributed and blamed Arkham Intelligence for mislabeling wallets.

The MANTRA team also issued a statement clarifying that “this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens.”

📊 UPDATE: Mantra investors deny dumping $OM before crash, despite onchain data showing $227M in $OM moved to exchanges ahead of the collapse. pic.twitter.com/ZQRDwzyRrw

— Cointelegraph (@Cointelegraph) April 14, 2025

On-Chain Evidence and Past Concerns

Despite these denials, on-chain data has raised questions. Blockchain sleuth ZachXBT reported that several people were offered loan deals against OM in the days leading up to the crash.

ZachXBT specifically mentioned two names: Denko, the founder of Reef Finance, and Fukogoryushu. According to the sleuth, both had allegedly been reaching out to various people asking for massive loans against their OM holdings before the crash.

The two names I keep hearing tied to the Mantra incident are Denko (Reef Finance founder) and Fukogoryushu as they had allegedly been reaching out to a number of people asking for massive loans against their OM in the days leading up to the -90% crash.

For those unfamiliar REEF… pic.twitter.com/jQ0YLCMoGX

— ZachXBT (@zachxbt) April 14, 2025

Blockchain tracker Lookonchain noted that $227 million in OM tokens flowed to exchanges, coinciding with the price drop.

Questions about MANTRA’s operations existed even before this crash. A 2023 Hong Kong court ordered six MANTRA DAO members, including CEO Mullin, to turn over financial records after accusations of fund misuse.

According to on-chain data, one blockchain wallet holds around 77% of OM’s circulating supply. Critics argue the remaining publicly available tokens (worth around $500 million) were the only thing supporting the multibillion-dollar valuation.

Adding to suspicions, a wallet tagged by Arkham Intelligence as belonging to Laser Digital, a crypto VC firm that backed MANTRA last year, transferred over $41 million worth of OM to OKX just two days before the crash.

The weekly chart shows MANTRA’s price drop ended as it hit a weekly buy-side imbalance zone extending from $0.380 to $0.540. If this key zone holds, some analysts believe a bullish reversal is possible.

The midpoint of the 94% crash is $1.594, which would require a 328% rally from current levels. While this target might seem unreachable, MANTRA has already bounced 65% from its bottom.

Technical indicators on the daily chart show an oversold RSI and steep red histograms, both reflecting the recent sell-off. Market observers suggest that a few more days of price action at the bottom will indicate whether a recovery rally is possible.

The MANTRA team says that tokens remain locked and subject to published vesting periods. They insist that “OM’s tokenomics remain intact,” as shared in their latest token report.

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