The OM token from the Mantra chain recently crashed over 90% in just one hour, causing a loss of over $5.5 billion in value. The crash started when a wallet possibly linked to the OM team deposited 3.9 million OM tokens on the OKX exchange. This raised concerns because the team controls nearly 90% of the total OM supply.
Mantra claims limited involvement in the crash, but internal moves and market reactions triggered a dramatic sell-off. The OM team has faced criticism in the past for price manipulation, and the latest deposit triggered a chain reaction that sent the token’s value spiraling downward.
After the deposit, a massive sell-off began, sparking rumors of earlier over-the-counter (OTC) deals at steep discounts, possibly as high as 50%. The token’s value continued to decline, leading to panic selling and a cascading liquidation effect that sent the price to its breaking point. Mantra co-founder JP Mullin attributed the price drop to “reckless liquidations,” while Binance clarified that cross-exchange liquidations caused the crash.
The OM token crash has been called a major scandal by OKX CEO Star Xu. He emphasized that all on-chain data, such as token unlocks, deposits, and liquidations, is public and can be reviewed. OKX promised to release detailed reports. A report revealed that 17 wallets, including two linked to investor Laser Digital, sent $227 million worth of OM to exchanges just before the crash.
Mantra assured its community that the team did not move any tokens during the crash and that the project remains strong. However, crypto expert ZachXBT questioned the sudden drop and felt that the team’s explanation did little to improve the situation.
OKX also reported significant changes in the OM token’s tokenomics starting in October 2024. The exchange noted unusual large-scale activity involving similar addresses on the blockchain since March 2025. In response, OKX adjusted its risk controls and advised users to exercise caution due to heightened market risks.
Despite the crash, the OM token rebounded 200% from its low point, reaching $1.10. Mantra co-founder JP Mullin confirmed that the project is still active, with its official Telegram group remaining online. However, experts doubt the sustainability of the recovery, with some predicting a further 90% drop and considering any gains as temporary bounces.
FAQs:
1. Why did the OM token crash over 90%?
A: A large token deposit by a wallet linked to the team triggered panic selling and cascading liquidations, wiping out $5.5 billion in value.
2. Did the OM team manipulate the token’s price?
A: The OM team denies involvement, but past accusations and a large insider-held supply have raised concerns about manipulation.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
