- MANTRA CEO blames CEXs for OM’s 90% crash, citing “reckless forced closures” during low-liquidity hours not internal selling.
- John Patrick Mullin denies allegations of team or investor involvement, pointing to centralized exchanges’ unchecked authority.
- OM token rebounds above $1 after crashing from $6.30 to $0.37; all team/investor tokens remain locked.
John Patrick Mullin, co-founder and CEO of MANTRA, stepped forward to explain the jaw-dropping 90% plunge in the OM token, a crash that saw OM fall from $6.30 to just $0.37 within hours on April 13. In an official statement, the team said the sell-off was not triggered internally and pledged to share more details soon.
While some in the crypto community were quick to point fingers at the MANTRA team, accusing them of dumping their holdings, Mullin categorically denied the allegations. Instead, he pinned the blame on “reckless forced closures” initiated by centralized exchanges (CEXs) during a period of low liquidity, suggesting that the damage wasn’t due to any internal foul play.
“The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice,” Mullin wrote in a public statement. “This was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors.”
Without naming any specific exchange, Mullin criticized the unchecked authority and discretion exercised by CEXs, arguing that their actions created a perfect storm during a vulnerable time Sunday evening UTC (early Monday in Asia), when trading activity is historically thinner and markets are more susceptible to volatility.
“This points to a degree of negligence at best or possibly intentional market positioning taken by centralized exchanges,” he added.
MANTRA (OM) Token Recovers Above $1 After Crash
The OM token, which had once soared to a peak of $9 earlier this year, managed a partial recovery, climbing back above $1 at the time of writing. Mullin reassured the community that all team and investor tokens remain locked by publicly available vesting schedules and emphasized that OM’s core tokenomics remain intact.
Still, the explanation hasn’t calmed the storm. Critics argue that the official response lacked key details and transparency. In a follow-up post on X, Mullin said the team is actively compiling a full breakdown of the events and would host a community discussion to provide further clarity.
This incident comes amid broader turbulence in the altcoin space. Several tokens have recently experienced similar flash crashes on Binance, highlighting the growing volatility in the market. Notably, Act I: The AI Prophecy plummeted by 50%, DeXe saw a sharp 38% drop, and dForce declined by 19%, reflecting a wave of sudden and severe corrections across multiple projects.
These dips followed Binance’s updated margin requirement policies, which reportedly heightened the risk of liquidations for undercollateralized positions, adding fuel to speculation that a domino effect may have triggered OM’s freefall as well.
As MANTRA deals with the fallout, the event has reignited debates around centralized exchange practices, liquidity management, and the vulnerabilities of trading during off-hours. The coming days will be critical in determining whether OM can restore confidence or if the weekend crash marks a turning point in its trajectory.
Related | From Slump to Surge: Pi Network Price Could Jump 135% Soon
