Trading of Mantra (OM) token has reached a critical point, with its price dropping by 90%. Many analysts have begun to speculate about potential insider selling by the project's team.
Situation Escalation with OM Token
On April 14, Mantra DAO moved another $26.96 million in OM tokens to a Binance wallet. This move raised concerns among analysts as it coincided with a sharp drop in the token's price from $6.28 to $0.7192. The crash wiped out over $5 billion in market cap.
Mantra CEO's Statements
In response to the price crash, Mantra CEO JP Mullin claimed that the sell-off was not due to any token sales by the team or investors, but rather forced liquidations by centralized exchanges. This statement is met with skepticism from independent analysts.
Exchange Responses to the Situation
Exchanges like Binance and OKX confirmed that they have launched investigations into the matter. Binance stated that initial findings suggest the price crash is likely due to cross-exchange liquidations, while OKX pointed to major changes in OM's tokenomics.
The situation surrounding Mantra's OM token remains uncertain, and ongoing investigations by exchanges may clarify the events. Concerns about insider selling and the project's tokenomics structure raise significant doubts among investors.
