😱Mantra (OM) Under Fire for Alleged Liquidity Manipulation❗

Mantra (OM) is facing serious allegations after claims emerged that the project inflated its trading activity and liquidity to climb the crypto market cap rankings.

Mantranetwork (OM) is facing serious allegations after claims emerged that the project inflated its trading activity and liquidity in an attempt to climb the crypto market cap rankings.

A recent episode of The Chopping Block podcast suggests that Mantra, alongside its market makers, engaged in practices to simulate high trading volume by transferring tokens between controlled wallets and exchanges.

However, less than 1% of OM tokens were allegedly available for public trading at any given time. The tokens were reportedly cycled through selected wallets to create the illusion of deep liquidity.

As a result, OM managed to briefly become a top-25 token by market cap. But when a major holder attempted to sell out of their coins, the token price dropped by 90% in a mere 90 minutes—highlighting the complete lack of liquidity.

This blatant manipulation came to light due to gaps in data verification on platforms like CoinMarketCap and CoinGecko, which often rely on self-reported data from projects.

The report by The Block highlights several major concerns arising from this case:

* Artificial volume created a false sense of demand for the token.

* Shallow liquidity at major exchanges went undetected.

* Billions in market cap vanished almost instantly due to a lack of buyers.

To prevent similar cases in the future, the report proposes several solutions, such as mandatory disclosure of market-making partnerships, market-making rebates, and trading agreements. It also suggests on-chain verification of token distribution and wallet ownership before project listings.

However, the report notes that market makers may resist disclosing these partnerships and that despite good intentions, the lack of regulation may lead to inconsistent enforcement of these measures across platforms.