In a dramatic crash that rocked the crypto world, OM — the token of the MANTRA project — dropped more than 90% in under an hour, wiping out over $6 billion in value.
What happened next was a mix of panic, confusion, and anger. A single wallet move sparked the crash, but the signs were there long before — from secret deals to broken promises. Now, investors are left wondering if this was a freak accident… or something far more calculated. Luna 2.0?
Is this the next big crypto scandal? Let’s break down what really went wrong.
The MANTRA team has responded, saying the crash was not caused by insiders. In an official statement, they said they are investigating the issue and working to fix it. Co-founder John Patrick Mullin also asked the community not to panic, saying they’re looking into what happened.
The crash began when a wallet connected to the MANTRA team suddenly sent 3.9 million OM tokens to the OKX exchange. Since the team controls almost 90% of all OM tokens, this raised major concerns. With so much control, even one large transaction could shake the market — and that’s exactly what happened.
This crash didn’t come out of nowhere. For months, OM holders had been losing trust in the team. There were accusations of market manipulation using market makers, sudden changes to tokenomics, and delays in delivering a promised community airdrop. All of this had already put pressure on the community’s confidence.
OTC Deals Add Fuel to the Fire
What really caused panic were the rumors of private over-the-counter (OTC) deals. Tokens were reportedly sold behind the scenes at big discounts — some up to 50% off. When the price started dropping, even those private buyers rushed to sell, triggering a chain reaction. Stop-losses kicked in, leveraged trades were liquidated, and within an hour, OM’s price crashed from $7 to just $0.50.
Crypto analyst StarPlatinum compared the crash to the LUNA disaster. He pointed to a recent controversy just a month ago when more than 50% of wallets eligible for an airdrop were blacklisted without any clear reason. That move created deep mistrust in the project.
StarPlatinum also noted the quiet changes to OM’s tokenomics, a lack of updates from the founders, and rumors that the team was controlling prices through market makers. The large wallet transfer to OKX sparked fear — and once word spread about the discounted token sales, panic selling took over.
Things got worse when OM’s official Telegram group was deleted right after the crash. The last message compared the event to “LUNA 2.0.” Since then, the team has gone completely silent, which has only added to the confusion and fear among investors.
Both analysts and community members agree on one thing: when a project is too centralized, lacks clear communication, and keeps changing the rules, it becomes dangerous. The OM crash is a harsh reminder that in crypto, doing your own research is necessary.
As investors try to recover, one question remains: Can trust in OM ever be restored?
OM crashed after a team-linked wallet deposited millions of tokens, triggering sell-offs, market manipulation, and OTC deals, causing panic.
Yes, analysts compare OM’s 90% crash to LUNA 2.0 due to market manipulation, secret deals, and community distrust leading to massive losses.
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