Mantra CEO Blames Centralized Exchange Liquidations for OM Token Crash
Mantra CEO JP Mullin has attributed the dramatic crash in OM’s price to forced liquidations initiated by centralized exchanges. On April 13, the OM token plunged over 90%, dropping from around $6.30 to under $0.50 within hours. In an April 14 post on X (formerly Twitter), Mullin explained that the sudden sell-off occurred during low-liquidity hours on Sunday evening (UTC), which he believes intensified the market impact.
Sherpas, OMies, and broader crypto community,
— JP Mullin (
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…,
) (@jp_mullin888) April 13, 2025
He stressed that the drop was not triggered by any token sales from the Mantra team or its investors, adding that all team-held tokens remain locked in accordance with the project’s vesting schedule. Mullin reaffirmed Mantra’s long-term vision and encouraged ongoing support from the community.
However, not all analysts agree with Mullin’s assessment. Independent crypto commentator Max Brown claimed the sell-off began when a wallet, allegedly tied to the Mantra team, deposited 3.9 million OM tokens to the OKX exchange. Given that the Mantra team reportedly holds nearly 90% of the total token supply, this large transfer spooked investors and sparked panic selling.
The fallout was severe, wiping out more than $5.5 billion in market capitalization. OM’s market cap plunged from $6 billion to as low as $485 million. As of press time, OM is trading at $0.8623—down over 90% from its all-time high of $8.99 in February. Despite the plunge, trading volume surged by over 2,500% in the past 24 hours, reaching $1.9 billion, according to data from crypto.news.
Mantra, a regulatory-compliant Layer-1 blockchain focused on real-world asset tokenization, has made headlines in recent months for its strategic partnerships and regulatory milestones. In January, the project signed a $1 billion asset tokenization deal with real estate developer DAMAC. In February, it secured a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to operate legally in the UAE.
Still, the token crash has reignited concerns about the project’s transparency and governance. Wu Blockchain, a widely-followed crypto news outlet, resurfaced a 2021 report linking Mantra’s founding team to a controversial gambling platform and previous misleading investment claims. Some traders have drawn comparisons to past crypto collapses, including the infamous Terra crash, raising questions about the integrity of exchange-related processes and centralized control in the ecosystem.
Leave a comment