On April 14, the OM token from the Mantra project faced a dramatic decline, plummeting nearly 90% within 24 hours. This situation has drawn the attention of major exchanges Binance and OKX, raising concerns in the crypto community.
Severe Decline of OM Token
The OM token, which previously had a market cap of $6 billion, fell to $764 million within a day. The sudden drop was attributed to a series of cross-exchange liquidations, causing significant concern among crypto market participants.
Binance and OKX's Response
Binance stated that they had reduced leverage for OM since October 2024 and released warnings about significant changes in the tokenomics. OKX confirmed that they would conduct a detailed inquiry, calling the situation a major issue for the credibility of the crypto sector.
Analysis and Conclusions
Mantra's CEO, JP Mullin, attributed the crash to forced liquidations initiated by centralized exchanges, denying internal sell-offs. However, analysts point to a 3.9 million OM deposit associated with the Mantra team that likely triggered the sell-off cascade. Data analysis suggests that the team may hold up to 90% of OM’s total supply, leading to the rapid price drop. The current trading price stands at $0.79.
The collapse of the OM token raises important questions about transparency and management within crypto projects, as well as the role of major centralized exchanges in maintaining market stability.
