On April 13, the OM token of Mantra saw a dramatic price drop, falling from over $6 to below $0.50, causing significant panic within the crypto sector.
Overview of the OM Token Crash
The OM token plummeted by over 90%, leading to a loss of more than $5 billion in market capitalization. Comparisons to the LUNA crash fueled rumors about possible manipulation and actions by certain market players.
Events of April 13 and 14
Throughout April 13, the token traded steadily, but sharp declines occurred by the evening. Mantra issued statements in response, though initial comments faced backlash from the community. By April 14, Binance and OKX offered their perspectives, indicating cross-exchange activity could have contributed to the price fluctuations.
What Caused the Crash?
Several theories surrounded the events of the crash. Mantra representatives ruled out internal trading, indicating no failure to control tokens occurred. However, information regarding deposits on exchanges and potentially mislabeled wallets continued to stir new rumors.
The situation with the OM token highlighted many transparency issues within the cryptocurrency industry. Further investigation and additional statements from Mantra are expected regarding the developments.
