Kusama (ksm) 
Mantra CEO Attributes OM Token Price Crash to Forced Liquidations
The cryptocurrency market witnessed a dramatic plunge in the price of Mantra’s OM token on April 13, as its value dropped over 90% within hours—from around $6.30 to below $0.50. According to JP Mullin, Mantra’s chief executive officer, the crash was caused by forced liquidations initiated by centralized exchanges during low-liquidity hours on Sunday evening UTC.
Understanding the Price Drop
In an official statement, Mullin emphasized that the sell-off was not the result of token sales by the Mantra team or its investors. He clarified that OM tokens remain locked under the project’s vesting schedule. Mullin also reassured the community of Mantra’s long-term commitment and urged continued support for the project.
“The forced liquidations triggered by centralized exchanges during low-liquidity hours amplified the market impact.” – JP Mullin
Market Concerns Raised by Analysts
Despite Mullin’s explanation, independent analysts have presented conflicting views. One analyst, Max Brown, suggested the sell-off began when 3.9 million OM tokens were deposited on OKX by a wallet allegedly linked to the Mantra team. Given reports that the team controls nearly 90% of the total token supply, this move caused panic among investors and prompted a widespread sell-off.
The price crash wiped out over $5.5 billion in market capitalization, reducing OM’s value from $6 billion to under $485 million at its lowest point. As of now, the token is trading at $0.8623—down 90% from its February all-time high of $8.99. OM’s trading volume surged by more than 2,500% in the past 24 hours, reaching $1.9 billion.
Mantra’s Recent Developments
Mantra has garnered attention in recent months due to its focus on regulatory compliance and real-world asset tokenization. In January, the project signed a $1 billion partnership deal with real estate giant DAMAC to tokenize assets. Furthermore, Mantra secured a virtual asset service provider license from Dubai’s Virtual Asset Regulatory Authority (VARA) in February, enabling it to operate legally in the UAE.
Renewed Scrutiny and Criticism
The crash has reignited concerns about the project’s transparency and the credibility of its founding team. Wu Blockchain, a prominent cryptocurrency news channel, resurfaced a 2021 warning regarding Mantra’s team, alleging connections to a gambling website and past false investment claims. Some traders have compared the situation to previous collapses like Terra, raising questions about the project’s governance and exchange practices.
The incident serves as a reminder of the volatility and risks inherent in cryptocurrency investments. Investors are advised to conduct thorough research and exercise caution when entering the market.
