The drop in the Mantra (OM) price raised many eyebrows just before the week’s trade. Mainly because Mantra was considered one of the fundamentally strong tokens and ranked number 1 in Real World Assets (RWA) tokens. In times when the markets are recovering from the latest bearish action, such events raise huge suspicion. The OM price was trading above $6, while the trading volume remained constrained below $100 million. In no time, the volume rose above $2 billion, which slashed the price by over 93% to as low as $0.43 in no time.
It all started when a single transaction was processed of a wallet linked to the Mantra team that sent over 3.9M OM to Okex. This raised huge concerns as 90% of the token supply is controlled by the insiders, which could hurt the token’s value anytime, which cropped up. The OM price dropped from $6 to $0.48, whipping over $6 billion from the markets.
A month ago, the platform launched an airdrop and before this, they had blacklisted more than 50% of wallets, calling them ‘bots’ without any transparency. This followed a series of rumors that shook the confidence over the token. Insiders were allegedly running OTC token deals at 50% discounts, which triggered panic selling, stop-loss cascades and leverage liquidations, while most of them had no idea of what was going on behind the scenes.
The OM price crash has shaken the entire crypto market with the excessive greed of the Mantra team. Since Q3, 2023, the OM token has been surging with a 200x upswing and the reason behind this jump was not fundamental but market manipulation. The changed tokenomics, controlled 90% supply, delayed community airdrop, OTC deals and Tier-1 market makers who inflated prices over the past 2 years.
Initially, the dump was triggered by the sale of 4 million tokens, and as the liquidity was low on weekends, the price dropped below $3, pushing the OTC buyers into a loss. In no time, the liquidation cascade happened, and the MMs & OTC buyers rushed to sell first, causing the 90% dump. During all this, the second-largest wallet was delegating and sending OM tokens to exchanges.
It points towards a perfectly planned dump to rug the community that was executed. The Terra ecosystem created a new token to revive the platform but failed. The same thing happened with the FTT token as well. This suggests that once the investors lose their confidence, the token’s future remains in the dark. While the people behind the Terra & FTX collapse were put on trial, the founders and CEOs of Mantra may also face a similar consequence.
At the end of its two-day meeting, the Fed's policy group, the Federal Open Market…
The crypto markets are consolidating as all eyes are on the upcoming FOMC. The Bitcoin…
The sentiments around the SUI price are growing and becoming more bullish day by day.…
The Solana price is juggling around a narrow range after triggering a rebound from the…
The crypto market has become more unpredictable as investors wait for the Federal Reserve’s decision…
As Q2 winds down and investors prepare their portfolios for the next quarter, one question…
