Mantra DAO's OM token crashes 90% in a single day, wiping out nearly $6 billion from its market capitalization

Trading at approximately $6 before the collapse, the token hit a low of $0.37 on April 13, 2025, before recovering slightly to around $0.80

Part of the cryptocurrency world was left reeling after the OM token, issued by Mantra DAO, suffered a staggering 90% decline in value over the course of a single day.

After reaching a high of around $6, the token plummeted to a low of $0.37 on April 13, 2025, before recovering slightly to trade at approximately $0.80, according to data from CoinMarketCap.

This rapid price collapse resulted in a nearly $6 billion wipeout from the token’s market capitalization, leaving investors in disbelief and sparking widespread alarm within the crypto community.

The CEO of Mantra DAO, JP Mullin, has attributed the crash to forced liquidations initiated by centralized exchanges.

In a statement released on Friday, Mullin strongly contested claims that the OM token sell-off was connected to token sales by the Mantra team or its investors.

He asserted that the OM tokens remain locked in accordance with the project’s vesting schedule, adding that no changes have been made to the token’s economic structure.

Despite the turbulent period, Mullin expressed Mantra DAO’s unwavering long-term commitment to the ecosystem and called for community support during this challenging time.

“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders,” Mullin explained.

“The timing and depth of the crash suggest that sudden account closures were carried out without adequate warning, particularly during low-liquidity hours on a Sunday evening UTC (early morning Asia time). This points to negligence at best—or perhaps intentional market manipulation by centralized exchanges.”

However, some analysts have presented a differing perspective on the events leading up to the OM token crash.

Max Brown, a respected crypto analyst, reported that the sell-off commenced when 3.9 million OM tokens were deposited on OKX by a wallet allegedly linked to the Mantra team.

This move sparked concerns among traders, considering the team’s reported control of nearly 90% of the total OM token supply.

As a result, traders panicked and initiated a mass sell-off, leading to a rapid decline in the token’s price.

In response to these claims, Mullin remained adamant in his denial, stating, “To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or Mantra’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact, as shared last week in our latest token report. Our token wallet addresses are online and visible.”

The crash has left many investors questioning the stability and transparency of the OM token and its ecosystem.

Analysts believe that the incident exposed the vulnerabilities of cryptocurrencies to the practices of centralized exchanges, particularly forced liquidations during periods of low liquidity.

In the aftermath of the events, Mantra DAO’s leadership has promised to conduct a thorough investigation and ensure that any necessary corrective actions are taken to mitigate the situation and regain the trust of the community.

Amid a flurry of allegations and contradicting reports, the primary focus now lies on restoring confidence in the project and stabilizing the performance of the OM token in the market.

Meanwhile, the broader crypto industry continues to observe the situation closely, as this event serves as a stark warning about the potential risks of market manipulation and the crucial importance of safeguarding decentralized financial ecosystems from external interference.