The Mantra token experienced a sharp decline, dropping 90% in value in just one day. This article examines the reasons behind this situation and the team's reactions.
The Collapse: From $6.3 to Below $0.50
On April 13, the Mantra token ([OM](https://coinmarketcap.com/currencies/mantra/)) plummeted from $6.30 to under $0.50, wiping out over $6 billion in market value. This led to panic among investors. Some traders suspected a potential 'rug pull.' Opinions circulated on social media that the Mantra team might have sold off large amounts of tokens.
Mantra's Response to the Crisis
In the midst of the chaos, John Patrick Mullin, co-founder of Mantra, took to X to deny any wrongdoing on their part. He emphasized that the team tokens remain in custody and blamed the crash on 'reckless forced liquidations' by an exchange. He assured the community that they are actively looking into the events that transpired.
Company's Future
Despite the crisis, the company's prospects remain bright. Mantra had significant achievements, such as establishing a $1 billion strategic partnership with DAMAC and securing a VASP license in the UAE. Investors are eager to know what steps the team will take next and seek clarification on the nature of the crash.
The Mantra crash highlights the volatility of cryptocurrency markets. Investors are waiting for further actions from the team to restore confidence and address the issues that led to such a significant drop.
