The OM token, native to the Mantra blockchain, saw its value collapse by more than 90 percent within just one hour on April 13. The token’s price fell sharply from around $6.30 to below $0.50, bringing its market capitalization down from over $6 billion to a fraction of its former value.
According to market tracking platform CoinGecko, the rapid crash occurred without warning, triggering widespread alarm among investors. Following the crash, the price of the token briefly dropped below $0.50, although it briefly stabilized above $0.50.
Market observers described OM’s quick fall as one of the biggest collapses after LUNA and FTX. Investor Gordon alerted the team that the crash could be considered a rug pull, prompting them to act quickly or risk OM’s dissolution to zero value.
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Reckless Liquidations Blamed as Team Denies Involvement
Mantra co-founder JP Mullin later addressed the situation in a post on social media platform X. He confirmed that the Mantra team is still active and provided an address showing the team’s OM tokens remain in custody.
Mullin attributed the crash to “reckless liquidations” instead of any inner issues related to asset mismanagement or wrongdoings. The team leader confirmed to stakeholders that the team is dedicated to project development and mentioned the ongoing activity within the Mantra Telegram group.
Mantra project recently gained attention for its expansion into the Middle East, including a $1 billion partnership with investment firm DAMAC. In February, Dubai’s Virtual Assets Regulatory Authority granted Mantra a virtual asset service provider license, which allowed the company to operate throughout the UAE.
The sudden failure of OM occurred even though Mantra remained highly engaged in tokenizing real-world assets and regulatory work. The incident triggered worries about the reliability of token economic systems and matters concerning rapid market swings in low liquidity situations.
Conclusion
The OM token’s dramatic 90 percent fall in just one hour has left investors stunned and searching for answers. While the Mantra team insists that no foul play was involved, confidence in the token has been severely shaken. The situation continues to develop as the broader crypto community monitors any new updates.
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