Who could have seen this coming? The value of Mantra (OM), a real-world asset token, suddenly dropped by 95% in just a few hours. The price fell from $6.17 to only $0.42, wiping out more than $6 billion in market capitalization.
For many investors, it’s a financial nightmare – some are even facing the loss of their life savings. So, what happened? And more importantly, what’s next for Mantra holders? Keep reading to find out how this crash unfolded and what the team has to say.
Just three days before the crash, a group of large OM token holders moved a massive 14 million OM tokens, worth around $91 million, to the OKX exchange. This group had previously bought over 84 million OM tokens on Binance in March.
These large transfers raised concerns about a potential sell-off, but no one expected the crash that followed.
After the crash, the same holders saw the value of their tokens drop to just $62.2 million, losing over $400 million in the process. However, it wasn’t just the big investors who were hit hard. Individual investors have also shared their stories of devastating losses.
One investor revealed they had invested $3.5 million in OM, which is now worth less than $200,000. Another trader shared that they lost $800,000 and felt “rugged” by the project. These personal stories highlight the severe impact the crash has had on many people.
JP Mullin, the co-founder of Mantra, has pointed to centralized exchanges (CEXs) as the main cause of the crash. He believes these exchanges may have forced the sale of a large holder’s tokens, triggering panic selling across the market. Mullin stressed that the Mantra team had no involvement in the incident and that their tokens remain locked and visible on-chain.
Mullin suggested that the exchange may have sold the tokens during a period of low trading activity, which made the situation worse. While he didn’t name the exchange, the founder of OKX responded, promising to release a report to help clarify what happened.
In response to the crisis, the Mantra team has announced a community discussion on X (formerly Twitter) to talk about the situation and answer questions from holders.
Until then, they’ve advised all holders to stay alert and avoid falling for scam links or fake accounts pretending to be from Mantra. Official updates will only come from trusted sources.
For now, the future of Mantra (OM) remains uncertain, and investors are left to deal with the fallout from this dramatic crash.
Mantra said it will host a talk on X soon and holders should avoid scam links and wait for updates.
Mantra co-founder JP Mullin said CEXs caused the crash by forcefully selling big holdings.
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