Mantra has continued to face serious scrutiny over the sudden collapse of its native token, OM ($0.52), on April 13, 2025. Without any indications, OM went down from $6.21 to $0.49 clearing more than $6 million of investors’ funds. 

At the height of the crisis, one investor disclosed that they invested around $3.2 million in the token. Following the inception of the massive dip, their investment is now worth just $200,000. 

Mantra is a decentralized finance platform and layer 1 blockchain specifically built for tokenization and trading of real-world assets. At its core, Mantra is built on the Cosmos SDK which makes it compatible with IBC and it supports CosmWasm. This supports Mantra to have a vast ecosystem for institutional investors and institutions.

The network boasts of having a 10,000 transaction-per-second speed, making it one of the fastest blockchains in the world. Mantra has built-in modules, SDKs, and APIs to allow users to trade, and manage real-world assets. 

Following the crash, the co-founder of Mantra, John Mullin said the dip is due to forced liquidation by some cryptocurrency exchanges. The project executive hinted that the team is looking towards launching a buyback and burn campaign to help the token get back on track. 

Expert opinion on Mantra’s sudden crash 

After removing more than $6 billion of users’ funds, market participants argued that the sudden plummet isn’t a regular market movement. Instead, they established that the price dip is a pump-and-dump scheme that involves market makers and centralized exchanges. 

Master of Crypto, a popular analyst, provided key insight into the liquidation. The analyst disclosed how key team members of the project all resigned right before the price movement began to move downwards. 

The expert accused the Mantra project team of dumping the OM token as more than $560 million worth of the coin was sent to various exchanges shortly after members of the team resigned. More so, Master of Crypto added that there are rumors that the project team controls 90% of the token’s total supply which eliminates any form of transparency. 

Similarly, pseudonymous analyst, Choze tagged the collapse of OM as Terra Luna v2, emphasising that the project team dumped the Mantra. In a post, the analyst said the OM team dumped their entire holding which is about 90% of the token circulating supply. 

Choze went on to unravel how the project team already deleted the official Telegram group of Mantra. The expert went on to accuse the co-founder of Mantra, John Mullin as the main brain behind the dumping. 

However, before the plummet of OM, some industry players already warned that the credibility of Mantra is questionable. One anonymous X user identified as “Not Telling” already raised the alarm about the project right before the crash. 

On February 15, the individual said the low TVL of Mantra indicated that the project is struggling for acceptance among institutional users. They opined that there are strong indications that OM is like to suffer a rug pull at any time. 

Is OM truly a rug pull

Most experts are accusing Mantra of rug-pulling the project and most of their claims are supported by evidence. Thanks to their insights, holders and community members can now have crucial details about what happened. 

To an extent, the experts may be right considering various shady developments that happened before the collapse of the token. Furthermore, the world largest cryptocurrency exchange Binance narrated how it previously warned investors that the Mantra team is working to increase its total supply. 

Conversely, despite aiming to make such key changes, Mantra failed to inform community members about this move, further questioning the transparency of the project. There are strong indications that the crash may be a rug pull despite the project team refuting the claims. 

Nevertheless, the prior warnings against the project right before the clash suggest that the claims of a rug pull may be true. Also, the lack of transparency of the project team fueled speculations that, truly, OM’s fall is a rug pull. 

However, it is advisable for investors to always avoid projects with questionable dynamics to avoid losing their funds to dubious projects. It is essential for investors to always do background research on projects before committing their funds.  

Read More :

• KiloEx offers 10% bounty to hacker after suffering $7.4m cyber attack
• Tether, Fizen collaborates to advance global stablecoin adoption
• Mantra blames exchanges behind $6 billion OM liquidation

The post OM $6 billion crash — Where did things go wrong? appeared first on BinBits.