The Mantra OM token crashed 90% overnight at $ 0.70, wiping billions of value while the team blames the “reckless” exchange liquidations rather than internal actions.
Sunday evening, the Mantra OM token experienced a catastrophic accident, plunging more than 90% in a few hours and triggering more than $ 71.8 million in liquidations. The token, which was negotiated about $ 6.30 yesterday, is now at around $ 0.70, its market capitalization being considerably reduced by almost $ 6 billion to only $ 683.09 million.
Source: Coinmarketcap mantra price
The exchange noted that the initial price drop occurred around 2 h 28:32 (UTC + 8) on April 14, with “a rapid drop in prices and an increase in the negotiation volume appearing for the first time on other exchanges, followed by a sharp drop of more than 80% over the entire market in a short time.”
OKX’s analysis indicates potential structural problems with the token, declaring that “on the basis of public chain data and internal exchange data, the project token economic model has undergone major changes since October 2024.” The exchange also revealed that “since early March, several chain addresses with similar operating modes have experienced large deposits and withdrawals of various exchanges”.
In response to these risks, OKX “adjusted a series of risk control parameters” and added risk warnings to the OM token page. The exchange stressed that “the recent risks of the market are relatively high, and some tokens may have significant changes in the offer of tokens, which will have fluctuations and significant impacts on the prices of tokens”.
The co-founder of Mantra, John Patrick Mullin, quickly addressed the situation through the official channels of the project, attributing the collapse to “reckless forced closures initiated by centralized exchanges on OM account holders” rather than any action of the team.
“”The calendar and the depth of the accident suggest that a very sudden closure of the accounts has been launched without a warning or sufficient notice “,” Mullin said in an article on the social media platform X. He stressed that the incident occurred “during low liquidity hours one Sunday evening UTC (positioning of the morning market),” suggesting “a degree of negligence at best, by central exchanges “.
According to Correglass data, the crash has resulted in more than $ 74.7 million in liquidations in the last 24 hours, with ten positions each with liquidations exceeding $ 1 million.
Source: Coringlass
The Gordon market investor compared the situation to previous cryptographic disasters, writing: “(The team) must tackle this or OM seems to be able to go to zero, the largest carpet traction since Luna / FTX?”
Mantra leaders firmly denied these allegations, Mullin providing verification addresses to the team’s token assets to prove that they remain locked up as planned. “To be clear, this dislocation was not caused by the team, the Mantra Chain Association, its main advisers or the investors of Mantra who sell tokens. The tokens remain locked and subject to the published acquisition periods,” said the team in their community update.
Arkham Intelligence’s data indicate that Mantra Dao had burned around 21 million OM tokens in separate transactions on April 2, although this does not seem to be linked to the current crisis.
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