In the past week, the $OM token, belonging to the MANTRA platform, experienced a dramatic decline, triggering significant attention within the crypto community. Let's examine what happened.
Timeline of the $OM Crash
The crash began on April 14, 2025, when the price of $OM plummeted from $6.2 to $0.4 within just two hours. This followed massive sell-offs by large token holders, resulting in a $5.5 billion loss in market capitalization. Prior to this, changes in tokenomics were perceived by the market as a devaluation of the asset.
Official Statements and Responses
MANTRA issued a statement denying responsibility for the crash, claiming it was caused by low liquidity on exchanges. Binance and OKX provided their interpretations, suggesting potential market manipulation and ineffective risk controls. Shorooq Partners confirmed that mass liquidations triggered panic selling of $OM.
Analyst Observations and Market Response
Many analysts have noted that the high valuation of $10 billion for the token against a TVL of less than $4 million raises serious questions about the actual worth of $OM. Considering the context and prior acknowledged scandals, such as internal conflicts and allegations of fraud, it becomes evident that deeper issues in project management lie behind this crash.
The crash of the $OM token highlights the importance of analyzing and understanding the risks associated with investing in tokens, especially in the rapidly evolving DeFi space. Investors should approach project selection more carefully and consider the assets' history.
