- OM’s price plummeted after $227M moved to exchanges; market manipulation concerns arise.
- Founder Mullin’s pre-crash “no WiFi” tweet sparks criticism for poor leadership.
- Mullin blames CEX forced closures for the crash, denying team foul play amid skepticism.
Mantra’s native token, OM, went on a nosedive, sparking concerns of market manipulation. As investors denied dumping the token, on-chain data showed $227 million in $OM were swiftly moved to exchanges ahead of the collapse. Strikingly concerning was MANTRA Chain founder, John Patrick Mullin’s alleged post a day before the incident.
In the tweet on X, Mullin complained about the lack of WiFi connectivity on long-haul flights just the night before the token’s abrupt collapse.
Many found it to be weirdly timed, especially after OM fell from $6.30 to just $0.37 within hours on April 13. One user compared it to the perceived positive handling of the Bybit hack by CEO Ben Zhou. His proactive communication with the users through updates, providing proofs, and reassuring the affected community was seen as a positive image of leadership during a crisis.
On the other hand, critics expressed strong disapproval of the MANTRA founder’s post, deeming it a lack of accountability and poor leadership where he should have been providing transparency and support.
MANTRA Founder Claims ‘NOT OUR FAULT’
As calls grew against the team’s approach in handling the crisis, Mullin finally released a statement, refuting the allegations. He instead pointed the finger at “reckless forced closures” led by centralized exchanges (CEXs) at a time of low liquidity, suggesting that the damage wasn’t due to any internal foul play.
During periods of low liquidity, trading activity is often thinner, and markets are more prone to extreme price swings.
“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.”
While Mullin denies team involvement in the crash, investors remain skeptical given the suspicious timing of exchange transfers and his absence during the crisis. As investigations continue, MANTRA’s reputation hangs in the balance, raising critical questions about transparency and accountability in crypto projects.