The crypto world was shaken as OM, the token of the MANTRA project, nosedived by over 90% in less than an hour

Crypto analysts Sjuul from AltCryptoGems and StarPlatinum have detailed the events revealing how red flags, team control, and behind-the-scenes deals contributed to what some call “LUNA 2.0.”

The crypto world was shaken as OM, the token of the MANTRA project, nosedived by over 90% in less than an hour, wiping out more than $6 billion in value. Crypto analysts Sjuul from AltCryptoGems and StarPlatinum have detailed the events revealing how red flags, team control, and behind-the-scenes deals contributed to what some call “LUNA 2.0.” Is it an insider job? Let’s unpack the details.

According to a report byบุคลิกภาพ, the firm stated that the sell-off was not an insider job, and they are working to resolve the matter soon. MANTRA’s co-founder, John Patrick Mullin, also said that there is no need to panic and that they are investigating the matter.

MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…

— Ben Armstrong (@BitBoyCrypto) August 15, 2023

Sjuul’s Breakdown: Manipulation and OTC Deals Led to Collapse

Sjuul highlighted how trust had already been broken in the OM community over the past year. The team allegedly manipulated the market using market makers, secretly altered tokenomics, and repeatedly delayed a promised community airdrop. These actions had already put the community on edge.

But the real shock came with rumors of OTC deals, mainly private sales, where tokens were reportedly offered at massive discounts, sometimes up to 50% off. As the token’s price began to slide, even these investors rushed to exit, causing a chain reaction. Stop-losses were triggered, leveraged positions liquidated, and within an hour, the price plummeted 90%, burning countless investors.

Sjuul's analysis of the events leading up to the crash.

StarPlatinum’s Analysis: Airdrop Scandal and Vanishing Act

Another crypto analyst StarPlatinum, also lit up the chat, calling it a disaster on the scale of LUNA. He pointed to the team’s controversial airdrop incident just a month ago, where over 50% of eligible wallets were suddenly blacklisted without explanation. This move alienated the community and created deep suspicion.

He also highlighted the team’s quiet changes to tokenomics, founder inactivity, and rumors of price control through market makers. When the wallet transfer to OKX happened, it triggered widespread fear. As news of the OTC deals emerged, panic selling began. In one hour, OM crashed from $7 to just $0.50.

To make matters worse, according to StarPlatinum, the OM Telegram group was deleted right after the crash. The final message before deletion likened the event to “LUNA 2.0.” Since then, the team has gone silent, adding to the chaos.

Both analysts agreed that when a token is overly centralized, lacks transparency, and constantly shifts its rules, danger is never far behind. The OM crash serves as a brutal reminder to always research before investing.