Why Mantra token’s dramatic 90% crash wiped out $5.2B market share

Source Fxstreet
  • Mantra’s OM token plunges by a staggering 90% on Sunday amid allegations of insider trading.
  • Mantra team’s alleged control of 90% of the token supply sparks insider pump-and-dump concerns.
  • The Mantra team refutes insider dumping allegations, attributing the crash to reckless liquidations.
  • OM price trades at $0.83 in the wake of a resounding plunge from $6.33 on Sunday.

Mantra (OM) price hovered at $0.83 during the Asian session on Monday, following a massive 90% crash from $6.33 on Sunday. The crash wiped out $5.2 billion in the token’s market capitalization, quickly drawing comparisons to the infamous collapse of Terra LUNA and FTX in 2022. Mantra’s team has been accused of insider trading amid questionable token transfers.

Mantra price crash: Insider dumping or reckless liquidations?

Mantra, the security-first real-world asset (RWA) layer 1 blockchain built for institutions and developers, is in the crosshairs after its native OM token plummeted 90% on Sunday. The crash triggered $68.86 million in 24-hour liquidations, with long positions being hit the hardest at $49.68 million, while short positions lost $19.18 million, per Coinglass data.

Mantra liquidation data | Source: Coinglass

Multiple sources in the crypto community have raised questions regarding the crash, with some alleging that the Mantra team controls 90% of the token supply and that it could have coordinated the sell-off. 

According to a report by SpotOnChain, a platform tracking crypto transactions, a group of OM whales moved 14.27 million OM, approximately $91 million, to OKX three days before the crash at an average price of $6.375. Moreover, the same whales had jointly purchased 84.15 million OM, roughly $564.7 million, on Binance in March at an average price of $6.711.

Despite the value of their remaining balance of 69.08 million OM plunging to $62.2 million, SpotOnChain argued that “they may have hedged the position elsewhere, and it’s possible they contributed to the sharp drop.”

Lookonchain, another wallet tracking service, highlighted that at least 17 wallets moved 43.6 million OM, worth around $227 million at the time, to exchanges. This massive transfer made up 4.5% of the Mantra token’s supply. As per Arkham’s tag, two of the addresses are directly linked to Laser Digital, a strategic investor in Mantra.

In response to the allegations, the Mantra team said the project is “fundamentally strong.” The team added that Sunday’s crash resulted from “reckless liquidations” and that it did not have anything to do with the project’s management. 

What’s next for Mantra? 

It is unclear what may have led to the devastating crash, which saw many traders and investors sink deeper into losses amid the ongoing trade war. The Mantra team has promised an investigation and will share more details about what transpired. 

So far, a combination of factors, including potential structural vulnerabilities, especially the team's alleged 90% control of supply, large token deposits into exchanges, over-the-counter (OTC) deals, and forceful liquidations, could have triggered the crash.

Mantra’s OM token is heavily oversold on the daily chart based on the Relative Strength Index (RSI), suggesting that bears are in control as bullish momentum shrinks on Monday. The Moving Average Convergence Divergence (MACD) validates the downtrend, with the MACD holding at -0.3007.

OM/USDT daily chart

The next few days will be critical to Mantra’s performance; hence, traders may want to exercise patience. A report from the team could shed more light on what caused the massive plunge in OM price, possibly paving the way for a recovery. However, it would be prudent to expect different scenarios, including a continued downtrend, keeping in mind growing concerns over market manipulation.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Solana (SOL) Price Underwhelms, Experts Believe Cardano (ADA) and Mutuum Finance (MUTM) Are Set To SkyrocketThe crypto market suffers from jitters which have forced Solana (SOL) to decline 15% resulting in its current price of $131. Whales sold $26 million worth of SOL tokens while founder Anatoly Yakovenko failed to improve the situation through his comparisons of U.S. bonds to the MicroStrategy financial problems.
Author  Cryptopolitan
8 hours ago
The crypto market suffers from jitters which have forced Solana (SOL) to decline 15% resulting in its current price of $131. Whales sold $26 million worth of SOL tokens while founder Anatoly Yakovenko failed to improve the situation through his comparisons of U.S. bonds to the MicroStrategy financial problems.
placeholder
Trump joins Japan trade talks in surprise move, claims ‘big progress’ on tariff disputePresident Donald Trump entered the early stage of tariff negotiations with Japan on Wednesday, escalating what could have been a preparatory discussion into a diplomatic negotiation procedure.
Author  Cryptopolitan
8 hours ago
President Donald Trump entered the early stage of tariff negotiations with Japan on Wednesday, escalating what could have been a preparatory discussion into a diplomatic negotiation procedure.
placeholder
EUR/GBP trades in the red below 0.8600 mark ahead of ECB rate decisionThe EUR/GBP cross struggles to capitalize on the previous day's goodish rebound from the 0.8525-0.8520 area or a fresh weekly low and attracts some intraday sellers on Thursday.
Author  FXStreet
9 hours ago
The EUR/GBP cross struggles to capitalize on the previous day's goodish rebound from the 0.8525-0.8520 area or a fresh weekly low and attracts some intraday sellers on Thursday.
placeholder
Whales withdraw 14,929 BTC from Babylon LabsBabylon Labs saw an outflow of non-custodial staking, with 14,929 BTC sent to external addresses.
Author  Cryptopolitan
9 hours ago
Babylon Labs saw an outflow of non-custodial staking, with 14,929 BTC sent to external addresses.
placeholder
U.S.-Japan Talks Avoid Yen Exchange Rate, BOJ Likely to Cut Growth Forecasts Amid Uncertain Rate Hike ProspectsThe United States and Japan have begun negotiations on tariff-related issues, with statements from President Donald Trump and the Japanese delegation causing fluctuations in the yen exchange rate.
Author  TradingKey
9 hours ago
The United States and Japan have begun negotiations on tariff-related issues, with statements from President Donald Trump and the Japanese delegation causing fluctuations in the yen exchange rate.
goTop
quote