The cryptocurrency Mantra (OM) faced a significant drop in value, losing 90% of its market capitalization in a very short time. Reports indicate liquidations exceeding $70 million.
Scale of the Price Drop
The price of OM fell from over $6 to below $1 in moments. This sharp decline was triggered by actions from centralized exchanges that initiated forced liquidations.
CEO's Explanation
JP Mullin, co-founder and CEO of Mantra, explained that the market movements of OM were caused by reckless forced closures by centralized exchanges. He noted that such actions were unexpected and occurred without sufficient warning.
Market and Community Reaction
Mullin also expressed gratitude to the community and investors for their support during these challenging times, highlighting the resilience of Mantra among its followers.
The situation surrounding Mantra (OM) underscores the risks associated with centralized exchanges and their impact on cryptocurrency markets, raising questions about the future sustainability of similar projects.
