How Mantra's OM Token Collapsed in 24 Hours of Chaos

The crypto world was left reeling after Mantra's OM token plummeted by over 90% in a single day, wiping out more than $5 billion in market capitalization and triggering widespread panic. The sudden collapse drew comparisons to Terra's LUNA implosion as traders scrambled for answers.

A Timeline of Chaos

On April 13, OM's price dropped from over $6 to below $0.50, marking a violent interruption of the token's momentum. The hours that followed painted a messy picture of token transfers, insider speculation, and shifting blame.

The days leading up to the crash saw at least 17 wallets depositing a total of 43.6 million OM (worth $227 million) into Binance and OKX. Two of these wallets were labeled as belonging to Laser Digital, a strategic Mantra investor, by blockchain data platform Arkham Intelligence.

Unverified rumors of insider dumping, forced liquidations, mislabeled wallets, and exchange manipulation quickly spread. However, Mantra insisted it was caught in the middle, with co-founder and CEO John Patrick Mullin claiming that "reckless forced closures initiated by centralized exchanges on OM account holders" triggered the market action.

Theories Emerge

Several theories have been thrown around, ranging from a rug pull to insider trading. Mantra has denied these allegations in several instances by sharing wallet addresses.

Crypto detective ZachXBT claimed that individuals linked to Reef Finance had allegedly been seeking massive OM-backed loans in the days leading up to the crash. Meanwhile, Onchain Bureau blamed market makers at FalconX for the price crash, citing their loan option model as a potential culprit.

The Reality Behind the Crash

Mantra has stated that it has tapped an unnamed blockchain analyst to investigate the underlying cause of the crash. However, details remain confidential at this time.

Mullin reassured users that OM token recovery is the team's primary concern, stating that they are "still in the early stages of putting together this plan for a potential buyback of tokens."

The Future of Mantra

Mantra has published a post-mortem report and announced plans to introduce a token buyback and burn program. However, new information on the cause of the crash remains scarce.

Mullin has stated that he will burn all of his team's tokens, starting with his own allocation, in an effort to demonstrate transparency and accountability. The future of Mantra and its OM token remains uncertain, but one thing is clear: the team is committed to learning from this experience and moving forward.

What We Know

  • The price collapse was triggered by "reckless forced closures initiated by centralized exchanges on OM account holders," according to Mantra's CEO John Patrick Mullin.
  • At least 17 wallets deposited a total of 43.6 million OM (worth $227 million) into Binance and OKX in the days leading up to the crash.
  • Laser Digital, a strategic Mantra investor, has been labeled as one of these wallet holders by blockchain data platform Arkham Intelligence.
  • Crypto detective ZachXBT claims that individuals linked to Reef Finance had allegedly been seeking massive OM-backed loans in the days leading up to the crash.

The Investigations Continue

Mantra has tapped an unnamed blockchain analyst to investigate the underlying cause of the crash. However, details remain confidential at this time.

Mullin reassured users that OM token recovery is the team's primary concern, stating that they are "still in the early stages of putting together this plan for a potential buyback of tokens."

The future of Mantra and its OM token remains uncertain, but one thing is clear: the team is committed to learning from this experience and moving forward.