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Highlights
- The Mantra team blamed the token crash on "reckless liquidations."
- The team revealed they are investigating the development and will provide more details as soon as they can.
- The Mantra (OM) token price has crashed by over 80% in the last 24 hours.
The Mantra team has addressed the crypto community following the Mantra (OM) token price crash of over 80% in the last 24 hours. Despite the statement, the community is still concerned that this might have been a rug pull by the team, which controls a huge amount of the token’s total supply.
Mantra Team Responds Following Token Crash
In an X post, the Mantra team assured the community that the token is “fundamentally strong” despite the crash that occurred in the last 24 hours. The team blamed the crash on “reckless liquidations” and denied it had anything to do with the project.
They further assured that this had nothing to do with the team and revealed that they were looking into the Mantra price crash and would share more details about what happened as soon as possible.
In an X post, the project’s co-founder, John Patrick Mullin, further revealed that there was a massive forced liquidation from a large OM investor on a Centralized Exchange (CEX). However, he didn’t reveal whether it was one of the top crypto exchanges.
In another X post, Mullin tried to set the record straight. He stated that they didn’t delete the Telegram channel. He further remarked that the team’s tokens all remain in custody and provided a wallet address (mantra…..quam) for community members to verify this claim.
The Mantra co-founder added that they are actively figuring out why these massive forced liquidations occurred and will provide more information as soon as possible. He assured that they are still here and not going anywhere.
Mantra Price Crashes By Over 80% In 24 Hours
CoinMarketCap data shows that the Mantra price has crashed by over 80% in the last 24 hours. The token sharply dropped from an intra-day high of $6.3 to as low as $0.4. However, it has reclaimed the $1 price level following the team’s statement.
However, amid this statement, some community members still seem convinced that this was a rug pull, as the team controls a huge amount of the token’s supply. Crypto commentator Sjuul described the OM token as the LUNA of this cycle.
He further explained why the community believes the crash was a rug pull, stating that the crash began when a wallet believed to be connected to the team suddenly deposited 3.9 million OM tokens to the OKX crypto exchange. This deposit led to significant selling pressure, which caused the Mantra price to crash.
Lookonchain’s data on April 10 revealed that at least 17 wallets deposited 43.6 million OM tokens, worth $227 million, into crypto exchanges. This massive dump totaled 4.5% of the asset’s circulating supply, bringing substantial downside pressure on price.
Besides the token’s crash, the broader crypto market is witnessing a downtrend following US President Donald Trump’s statement in which he debunked reports of an exemption. This comes just a day after the crypto market rebounded following reports that the US president had exempted computers, phones, and chips from his tariffs on China and other countries.
More Info On The Mantra Crash
In a more recent X post, Mullin provided more information on the Matra (OM) token price crash. He stated they had determined that the crash happened due to reckless forced closures initiated by CEXs on OM account holders. The Mantra co-founder added that the timing and depth of the crash suggest that the CEXs initiated the sudden closure of account positions without sufficient warning or notice.
Mullin again assured that the team, MANTRA Chain association, its core advisors, and MANTRA’s investors weren’t responsible for the crash. He added that their tokens remain locked and subject to the published vesting periods. The co-founder also remarked that their OM’s tokenomics remain intact as shared in their latest token report last week.
Binance also provided an update on the OM price crash, confirming that it occurred due to massive cross-exchange liquidations. Meanwhile, on-chain trackers have also highlighted massive token dumps into exchanges, which explains the ongoing price slump.
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