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| JP Mullin, Mantra CEO |
$5.5 Billion Wipeout Spurs Transparency Concerns Amid Conflicting Analyst Claims
The OM token, native to the Mantra blockchain project, plunged over 90% in hours on April 13, sparking shock across the crypto market. JP Mullin, CEO of Mantra, stated that centralized exchanges triggered forced liquidations during low-liquidity hours, leading to the sudden collapse in price.
Forced Liquidations, Not Team Sales, Says Mantra CEO
Mullin addressed the crisis in an April 14 post on X (formerly Twitter), stating that the Mantra team did not sell any OM tokens. He emphasized that investor and team tokens remain locked under a vesting schedule, reinforcing the project's long-term commitment. However, Mullin admitted that low liquidity on Sunday evening UTC may have amplified the market impact.
Despite his assurances, traders remain skeptical. The OM token price fell from $6.30 to below $0.50, erasing more than $5.5 billion in market cap. It briefly bottomed out at $485 million before rebounding slightly to $0.8623 at press time. From its February all-time high of $8.99, OM is now down 90%.
Conflicting Claims Add Fuel to the Fire
While Mantra's CEO insists forced liquidations caused the crash, some analysts tell a different story. Independent crypto analyst Max Brown claims the crash began when 3.9 million OM tokens were deposited on OKX by a wallet allegedly tied to the Mantra team. Given that the project controls roughly 90% of the total OM supply, this sparked massive sell pressure.
Adding to the controversy, Wu Blockchain, a prominent news outlet, resurfaced concerns from 2021 linking the Mantra founding team to a gambling site and dubious investment practices. These reminders, coupled with the crash, have revived worries over transparency and centralized token control.
A Rising Star Now Under Scrutiny
Mantra had recently gained credibility as a real-world asset (RWA) layer-1 blockchain, particularly after a $1 billion asset tokenization deal with DAMAC in January. It also earned regulatory approval in February from Dubai’s Virtual Assets Regulatory Authority (VARA) to operate in the UAE.
Despite these achievements, OM’s massive drop has drawn comparisons to high-profile collapses like Terra. The spike in OM’s trading volume—up 2,500% in 24 hours to $1.9 billion—reflects both investor panic and speculative action.
As market participants continue to analyze the crash, the debate over decentralization, exchange practices, and token transparency in crypto remains more urgent than ever.