On April 14, 2025, the cryptocurrency community witnessed a dramatic event as the OM Mantra token, associated with the MANTRA Chain, plummeted by 90% within a single hour. This sudden crash resulted in the erasure of over $6 billion in market value, leaving investors and observers scrambling for answers.
The Trigger: A Massive Token Deposit
The immediate catalyst for the crash was the unexpected deposit of 3.9 million OM Mantra tokens into the OKX exchange by a wallet believed to be linked to the MANTRA Chain team. Given the team’s significant control over the token’s supply, this move raised alarms about a potential large-scale sell-off.
OM Mantra’s Centralized Control and Community Concerns
The MANTRA team reportedly controls a substantial portion of the OM Mantra token supply. Such concentration of ownership can lead to market manipulation and undermines the principles of decentralization. Over the past year, the community had voiced concerns about:
- Allegations of using market makers to artificially inflate the token’s price.
- Unannounced changes to the token’s economic model.
- Repeated delays in delivering promised community airdrops.
These issues eroded trust and set the stage for panic when the large token deposit was made.
The Role of OTC Deals
Compounding the situation were rumors of over-the-counter (OTC) deals where OM tokens were sold to private investors at significant discounts, sometimes up to 50% off. When the token’s price began to fall, these investors faced immediate losses, prompting a rush to sell and exacerbating the downward spiral.
The Domino Effect
The combination of a large token deposit, centralized control, and OTC deals led to a cascading effect:
- Mass sell-offs by investors.
- Triggering of stop-loss orders.
- Liquidation of leveraged positions.
Within an hour, OM Mantra token’s value had collapsed by 90%, marking one of the most rapid and severe downturns in recent crypto history.
It’s important to note that this is a developing story. Following the sudden collapse of the $OM token on April 13, 2025, MANTRA co-founder John Patrick Mullin addressed the community, attributing the crash to “reckless forced closures” on centralized exchanges (CEXs), rather than any action taken by the MANTRA team or its investors. He emphasized that all team and investor tokens remain locked in accordance with publicly disclosed vesting schedules, providing a verification address to support the claim. As new information continues to surface, readers are advised to closely monitor ongoing updates and official channels for further developments.
Guys, I've just woken up, and I'm getting the complete breakdown of what's going on. There was a massive forced liquidation from a large OM investor on a CEX. Still working on the details, but we are here, and we're fixing this.
— JP Mullin (
Thanks for the understanding.https://t.co/p8l2Teo4p2
) (@jp_mullin888) April 13, 2025
Lessons Learned
This event underscores the importance of:
- Decentralized Ownership: Ensuring no single entity holds disproportionate control over a token’s supply.
- Transparency: Clear communication about tokenomics and any changes to the economic model.
- Community Engagement: Honoring commitments, such as airdrops, to maintain trust.
- Caution with OTC Deals: Recognizing the risks associated with private sales at discounted rates.
Investors should conduct thorough due diligence, remain vigilant about the distribution of token ownership, and be wary of red flags that may indicate potential instability.
