- Mantra token crashed by 92% on Sunday, dropping from $6.33, losing over $5 billion.
- SpotOnChain data shows that large holders transferred 14.27M OM to OKX days before the crash.
- Mantra team responded, claiming the crash was due to “reckless liquidations” and assured that internal token control remains intact.
The OM token, native to the Mantra blockchain, experienced a sharp fall over the weekend, crashing 92% in value. The price dropped from $6.33 on Sunday, wiping out more than $5 billion from its market capitalization. By Monday, the token hovered at $0.71, with trading activity surging 3186% over the past 24 hours.
The steep decline triggered significant liquidations across the market. Data from Coinglass revealed that $74.51 million was liquidated within 24 hours. Of that, $53.86 million came from long positions, while $ 20.26 million was cleared from shorts. The event quickly drew comparisons to previous high-profile collapses, such as Terra LUNA and FTX in 2022.
Mantra’s token crash has raised red flags across the crypto market. There are claims that the Mantra team controls 90% of the OM token supply, sparking speculation about possible coordinated market activity.
Mantra Whale Sell-Offs Shake Market Confidence
Meanwhile, SpotOnChain, a crypto transaction monitoring platform, reported that a group of large OM holders transferred 14.27 million OM—worth around $91 million—to the OKX exchange just three days prior to the price drop. These same wallets had acquired 84.15 million OM on Binance in March for an estimated $564.7 million, at an average price of $6.711.
After the crash, the remaining 69.08 million OM tokens held by these addresses saw their total value fall to $62.2 million. The report suggested these parties may have protected their holdings through hedging strategies elsewhere and may have contributed to the price collapse.
In addition, Lookonchain, another wallet analytics firm, disclosed that 17 different wallets moved 43.6 million OM—valued at roughly $227 million at the time—onto exchanges. This figure represented 4.5% of the token’s total supply. Arkham Intelligence tagged two of these wallets as connected to Laser Digital, a strategic investor in Mantra.
Leadership Responds Amid Allegations of Insider Control
In response to the public concern, the Mantra team stated that the project’s fundamentals remain strong. They explained that the token crash was due to “reckless liquidations” and not due to any internal action by the team.
Co-founder JP Mullin noted that the project’s communication channels remain open and that team-held tokens are still under the team’s control. “We are here and not going anywhere,” Mullin wrote, also providing a verification address to ensure transparency about the team’s token holdings.
However, the exact cause behind OM’s sharp decline remains unclear. The crash left many traders and investors facing deeper losses. The Mantra team has pledged to investigate the matter thoroughly and intends to share further details once available.
As of now, the token’s chart displays signs of excessive selling pressure. According to the Relative Strength Index (RSI), OM is deeply oversold. The MACD, another trend indicator, shows the token firmly in a downward trajectory with a reading of -0.3026, confirming that the bearish trend remains dominant.
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