Mantra Crypto (OM) Token Just Cratered, Shedding 80% of Its Value and Torching Billions in Market Cap

Mantra crypto OM token just cratered, shedding 80% of its value and torching billions in market cap. Investors are stunned, staring at what's left of their portfolios

Mantra crypto (OM) has seen a staggering 80% price decline since March, wiping out billions in market cap and leaving investors reeling.

As the dust settles on OM’s fall from grace, the aftermath is a stark reminder of the delicate balance between hype and fundamentals in crypto.

After a period of relative calm, a Sunday night market saw massive forced liquidations batter an already quiet trading session.

One token in particular bore the brunt of the sell-off.

Mantra Crypto Token Loses 80% As Investors Are Smashed By Liquidations

Mantra crypto, the token known for its vivid presence in the minds of traders throughout 2024, has seen a swift and brutal decline.

Having reached a high of around $0.35 earlier in the year, the token now sits at $0.675, a staggering 80% drop from its peak.

This downturn has also seen a huge shift in market cap, with $3 billion wiped out to leave just $700 million.

The co-founder of Mantra, John Patrick Mullin, took to Telegram to explain some of the factors that led to OM’s downfall.

In a post on Sunday night, Mullin blamed “massive forced liquidations” in a barren market for the token’s downfall.

No names were mentioned, but the meltdown exposed some weak points in the project’s framework.

Earlier this year, a DAO vote introduced a one-for-one burn-to-merge system between Ethereum (ETH) ERC-20 tokens and Mantra’s native chain.

This move was seen as a desperate attempt to salvage liquidity for the project.

However, analysts like Ishmael Asad had already warned that doubling the token’s supply without any measures to increase liquidity was a recipe for disaster.

With no new users or projects to speak of, and a complete lack of news on any market maker partnerships, OM’s roadmap was quickly running out of steam.

A lack of transparency also hurt the project, as evident in an earlier statement by Binance.

Earlier this year, Binance noted the precarious state of OM’s tokenomics, a warning that now seems prophetic.

In a statement on its website, Binance said:

“We observed that some tokens have encountered difficulties in maintaining adequate liquidity in their secondary market after their initial listing on Binance.

“This lack of liquidity can lead to extreme price fluctuations, which may not necessarily reflect the intrinsic value of the tokens.”

The exchange then went on to highlight OM as an example of a token that had seen limited trading volume despite being listed for several months.

This lack of liquidity was a key factor in the token’s downfall, as it allowed a small number of whales to exert significant influence over the price.

With no new users or projects to speak of, and a complete lack of news on any market maker partnerships, OM’s roadmap was quickly running out of steam.

A lack of transparency also hurt the project, as evident in an earlier statement by Binance.

Earlier this year, Binance noted the precarious state of OM’s tokenomics, a warning that now seems prophetic.

In a statement on its website, Binance said:

“We observed that some tokens have encountered difficulties in maintaining adequate liquidity in their secondary market after their initial listing on Binance.

“This lack of liquidity can lead to extreme price fluctuations, which may not necessarily reflect the intrinsic value of the tokens.”

The exchange then went on to highlight OM as an example of a token that had seen limited trading volume despite being listed for several months.

This lack of liquidity was a key factor in the token’s downfall, as it allowed a small number of whales to exert significant influence over the price.

As the token fell, these whales began to exit their positions, putting further downward pressure on the price.

After a strong start to the year, a death cross on the Bollinger Bands and weak RSI suggest that OM is now in a falling knife pattern.

At present, the token is clinging to the lower Bollinger Band at $0.675 support.

If this level breaks, then expect a continuation of the downward trajectory toward $0.66.

However, a move above $0.695 on strong volume could be the first sign of a reversal.

Until then, all signs point toward further weakness for this beleaguered token.

What We’re Buying As Mantra Crypto Goes Down

If you’re looking for some top-tier tokens to add to your portfolio ahead of the next bull market, then check out the selection below:

Best Token is small in market cap, sitting at $11.7 million in presale, but is punching above its weight.

As a crypto wallet, it has a decentralized exchange, NFT gallery, staking hub, and presale tools all packaged into one.

In a space as crowded as crypto wallets, Best Token will