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Major Crypto Exchanges React to OM Token Price Crash
Leading cryptocurrency exchanges, including Binance and OKX, have responded to the recent crash of the OM token, addressing concerns about its sudden drop in market value and assuring users of ongoing investigations.
Binance’s Response to the OM Token Volatility
On April 14, Binance issued a statement following the OM token’s market cap loss of $5.5 billion due to extreme market volatility. The exchange attributed the price crash to cross-exchange liquidations that occurred within a short span of time.
“We are aware that OM, the native token of MANTRA, has experienced significant price volatility. Our initial findings indicate that the developments over the past day resulted from cross-exchange liquidations,” stated Binance’s Customer Support account.
To address the situation, Binance revealed that it had implemented additional measures for OM spot trading since January 2025. A pop-up warning was added to inform users about substantial changes in the tokenomics, including an increase in token supply.
“We remain dedicated to monitoring the situation closely and will continue to take appropriate actions to protect our users and maintain the integrity of our platform,” Binance stated.
Despite these efforts, OM’s price has plummeted significantly. At the time of writing, the token has dropped by nearly 90% in the past 24 hours. Its market cap now stands at $764 million, down from a previous high of $6 billion. The token is trading at $0.79, a steep decline from its all-time high of $8.99 in February 2025.
OKX CEO Labels the Incident a “Big Scandal”
OKX’s CEO, Star, described the OM price crash as a “big scandal for the crypto industry” and committed to publishing detailed reports based on on-chain data. Star emphasized transparency, noting that all relevant unlock, deposit, collateral, and liquidation data are publicly accessible.
“OKX will make all of the reports ready! All major exchanges’ collateral and liquidation data can be investigated,” Star commented.
On-chain data reveals significant movements of OM tokens between exchanges. Over the past month, 127 million OM tokens (13% of the circulating supply) were withdrawn from Binance, while OKX recorded deposits of nearly 70 million tokens—more than half of the amount withdrawn from Binance.
What Led to the OM Token Crash?
The OM token’s price experienced a sharp 90% drop last weekend, falling from $6.30 to under $0.50 in mere hours. Mantra CEO JP Mullin attributed the crash to “reckless forced closures initiated by centralized exchanges on OM account holders.”
“Centralized exchange partners play an important role in providing liquidity to projects like ours. We work closely with them, but they continue to exercise enormously high levels of discretion,” Mullin stated.
Mullin argued that the sell-off was not triggered by token sales from the internal team or investors, as OM tokens remain locked according to the project’s vesting schedule. However, on-chain analysts have raised concerns about conflicting claims.
Analysts pointed to wallet activity allegedly linked to the Mantra team, which deposited 3.9 million OM tokens on OKX. Crypto analyst Max Brown suggested that the team holds nearly 90% of the token’s total supply, which may have caused the market sell-off leading to OM’s $5.5 billion market cap loss.
Key Takeaways for Crypto Investors
The OM token crash highlights the importance of understanding tokenomics, on-chain data, and the role of centralized exchanges in cryptocurrency markets. For investors:
- Research Tokenomics: Evaluate changes in token supply and vesting schedules before investing.
- Monitor On-Chain Activity: Use publicly available data to track wallet movements and liquidity trends.
- Assess Exchange Policies: Understand leverage levels, collateral requirements, and risk warnings issued by exchanges.
As the crypto industry evolves, staying informed and vigilant about market dynamics is crucial for safeguarding investments.
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