Mantra’s OM Token Drops 90% Amid Allegations of Forced Liquidations
Mantra's OM token experienced a drastic decline of 90%, dropping from over $6 to around 40 cents within hours, attributed to low liquidity conditions in the cryptocurrency market. Key points include:
- Mantra's team confirmed the price drop was due to reckless liquidations, not issues within the project.
- The company specializes in tokenizing real-world assets, partnering with DAMAC Group to tokenize $1 billion in assets.
- OM had previously gained over 400% in 2024 despite low social media activity.
- Co-founder John Patrick Mullin indicated that centralized exchanges forced position closures, leading to significant market impact.
- Over $50 million in long position liquidations occurred, marking a record for OM futures.
- Open interest fell from $345 million to just over $130 million, signaling rapid withdrawals.
- Critics question the narrative and cite significant deposits to exchanges prior to the crash as indicative of potential manipulation.
- OKX founder Star Xu labeled the situation a major scandal for the crypto industry, promising transparency through on-chain data investigations.