The recent crash of the crypto project Mantra ($OM) by 90% alarmed the community. Let's examine the details of what happened and the possible reasons.
What Happened to Mantra?
The crypto project Mantra ($OM) experienced a dramatic price drop of 90%, raising widespread concern among investors. Its market cap plummeted from over $6 billion to $750,000 in just one hour. According to Lookonchain, from April 7 to April 13, at least 17 wallets deposited 43.6 million OM tokens into exchanges, representing 4.5% of the circulating supply. This massive sell-off led to sharp price declines.
JP Mullin's Reaction, CEO of Mantra
JP Mullin, CEO of Mantra, indicated that a mass forced liquidation from a large investor on a centralized exchange was responsible for the price crash. He assured that the project team had not engaged in any token manipulation. However, there were suggestions regarding Binance's potential involvement, although Mullin thanked them for their assistance and support during the situation.
Other Aspects of Mantra
The Mantra project has faced issues and controversies in the past but has survived for over five years. Recently, there were delays in an airdrop and numerous rumors surrounding the project. There are also speculations regarding unplanned changes to tokenomics and ongoing discussions about the team holding a significant portion of the token supply.
The crash of Mantra raises numerous questions about transparency and stability in cryptocurrency projects. The ongoing situation requires careful analysis from the community and investors.
