OM token suffered a sudden and severe 92 percent drop on April 13, sparking fear and confusion across the MANTRA community. The unexpected crash, which occurred around 18:28 UTC, prompted the team behind the project to launch an internal investigation immediately.
According to MANTRA, the price collapse was not caused by team-related token movements. All Mainnet OM tokens allocated to the team and advisors remain locked and untouched. The losses were entirely connected to the classic ERC-20 OM tokens, which have been in full public circulation since their launch in August 2020.
By April 15, MANTRA confirmed that 99.995 percent of those tokens were distributed among over 123,000 individual wallets. As a result, the trading activity that led to the price crash was attributed to broader market behavior and not to any internal token sale or manipulation.
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Low Liquidity and Collateral Sell-Offs Triggered Collapse
The investigation revealed that many OM tokens had been transferred to exchanges as collateral during low market activity. When prices began to fall, automated liquidation systems were activated, forcing sell-offs that deepened the drop.
An adverse feedback sequence emerged when lower costs pushed numerous investors to sell their tokens, further driving down the value. The price differences between OKX and Binance exchanges exacerbated the issue, resulting in minimal arbitrage opportunities and market instability.
Following the crisis, MANTRA introduced multiple actions to reconstruct trust in its market. The project designed two stabilization strategies: a token repurchase initiative and supply destitution operations. John Patrick Mullin from MANTRA announced a token-burning plan because he joined the team’s supply control initiatives, among other measures.
The team will deepen its collaboration with exchange partners to improve coordination functions and increase transparency within its operations. The upcoming live dashboard system will show real-time updates about tokenomics data combined with wallet information, so the community can track token supply movements.
Conclusion
The OM token’s sudden crash exposed vulnerabilities tied to low-volume trading and uncontrolled liquidations. MANTRA’s immediate response and plans signal an effort to rebuild trust and bring greater transparency to the token’s ecosystem.
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