The crypto world is in shock after MANTRA’s OM token suffered a massive crash, losing 90% of its value in just one day. This sudden drop wiped out billions of dollars and left investors confused, angry, and demanding answers. Was it a scam, a liquidation gone wrong, or something else? Let’s break it all down in simple terms.
What Is MANTRA and Its OM Token?
MANTRA is a blockchain project focused on Real World Assets (RWAs)—things like real estate, bonds, and other physical assets tokenized on the blockchain. Its native token, OM, is used within the platform for governance, staking, and various financial activities.
OM had been gaining popularity and even hit a high of $9 earlier in 2025, making it one of the more talked-about RWA tokens. But things took a drastic turn recently.
What Triggered the OM Token Crash?
On Sunday, [insert date], OM’s price collapsed from over $6 to just $0.37 in under 24 hours. That’s a jaw-dropping 90% loss in value. The token is now trading at around $1.03, but the damage is already done. This crash erased an estimated $5 billion in market value, and panic spread fast across the crypto community.
The Two Main Theories Behind the Crash
There are currently two main narratives being debated:
A) Insider Dumping Allegations
Some investors believe that insiders or team members sold off a massive amount of OM tokens through private over-the-counter (OTC) deals. To make matters worse, MANTRA’s official Telegram group was deleted, which many saw as a red flag and an attempt to avoid backlash.
B) MANTRA’s Official Statement: Reckless Liquidations
MANTRA responded quickly, denying any insider wrongdoing. Instead, they blamed the crash on “reckless liquidations by external actors”—basically saying that a big investor or trading firm had to sell quickly due to forced liquidation, causing a domino effect.
Investor Reaction: Outrage and Fear
The crash led to widespread anger in the crypto community. Many compared it to the Terra Luna collapse in 2022, calling it a “rug pull” or a “scam.”
Crypto investigator ZachXBT criticized MANTRA’s vague response, tweeting:
> “OM went down 90%+ from $5.9B to $500M market cap in a single candle. What kind of statement is this?”
Some investors are calling for legal action, while others fear the crash may hurt trust in RWA projects across the industry.
Could This Be a Case of Market Manipulation?
While nothing has been proven yet, here’s what people are suspecting:
Insider trading: The team or early investors may have sold large amounts quietly.
Market maker manipulation: Someone may have placed huge sell orders to cause panic.
Liquidation cascade: A big investor was forced to sell, triggering automatic sell-offs across platforms.
Until MANTRA provides full transparency, these theories will continue to fuel skepticism.
How Did MANTRA Respond?
MANTRA’s official X (Twitter) account posted a short message denying involvement:
> “This was not our team. We are looking into it and will share more details.”
Co-founder John Patrick Mullin also responded, saying that a large OM holder was forcibly liquidated and that it wasn’t a coordinated action by the team. They’ve promised more updates soon, but trust has already taken a big hit.
What Could Happen Next?
Here’s what to watch for in the coming days and weeks:
A detailed report from MANTRA could help clear things up and restore some confidence.
If insider trading is confirmed, legal action may follow.
The OM token’s price could recover if trust is rebuilt—or it could fall further if new problems come to light.
For now, investors are advised to stay cautious and wait for more clarity.
Key Lessons for Crypto Investors
This event offers some valuable takeaways:
Crypto is high-risk, especially with newer or low-liquidity tokens.
Always check vesting schedules and token unlocks before investing.
Be wary of projects that suddenly delete communication channels like Telegram or Discord.
Don’t go “all in” based on hype. Diversify your investments to minimize losses.
FAQs – Explained in Simple Terms
Q: Did the MANTRA team sell off their tokens?
A: MANTRA says no. They blame outside traders. But many investors are still suspicious.
Q: Is OM token dead now?
A: Not completely. It’s still trading, but its future depends on how MANTRA handles the situation.
Q: Can I take legal action if I lost money?
A: Possibly, especially if insider trading is proven. Keep screenshots and records just in case.
Q: Should I buy OM now while it’s cheap?
A: It’s extremely risky. Wait for more official info before making a decision.
Q: What does “reckless liquidation” mean
A: It means someone was forced to sell a large number of tokens quickly—possibly because of a loan or margin call—causing a market crash.
Final Thoughts
The OM token crash is a wake-up call for crypto investors. Hype can vanish overnight, and even trusted-looking projects can unravel fast. Until MANTRA gives full clarity, it’s best to stay cautious and prioritize transparency and risk management in all future investments.