Mantra's OM Token Drops 90% as Crypto Market Remembers Terra's LUNA

Crypto traders were reminded of Terra's LUNA early Monday as trendy real-world asset upstart Mantra's OM token dropped 90% within hours on no sudden catalyst

Crypto traders were reminded of Terra’s LUNA early Monday as trendy real-world asset upstart Mantra’s OM token dropped 90% within hours on no sudden catalyst — with conspiracy theories and allegations running abound among crypto circles.

OM plunged from over $6 to just over 40 cents late Sunday to early Monday in typically low liquidity hours for the crypto market — where outsized volumes can trigger massive price movements in either direction.

“We want to assure you that MANTRA is fundamentally strong,” the team said in an X post following the price drop. “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 about what happened as soon as we can.”

Mantra lets users tokenize real-world assets (RWAs) like real estate and commodities, enabling compliant digital investments in tangible assets. Its OM token facilitates transactions and governance.

In January 2025, Mantra partnered with DAMAC Group, a UAE-based conglomerate, to tokenize $1 billion in assets, including real estate, hospitality, and data centers.

OM was among the biggest market gainers in 2024, rising more than 400% on relatively low public conversation on crypto-related social media - which intrigued traders and investors alike on the strength of the move.

Among the biggest market gainers in 2024. A partnership with DAMAC Group for a $1B tokenization initiative was announced in January 2025. The OM token is used to power transactions and governance on the Mantra Chain.

Among the biggest market gainers in 2024. A partnership with DAMAC Group for a $1B tokenization initiative was announced in January 2025. The OM token is used to power transactions and governance on the Mantra Chain.

Among the biggest market gainers in 2024. A partnership with DAMAC Group for a $1B tokenization initiative was announced in January 2025. The OM token is used to power transactions and governance on the Mantra Chain.

However, in a surprising turn of events, OM experienced a rapid decline of over 90% within a few hours on Monday morning, raising concerns among investors.

The Mantra team acknowledged the price drop and is actively investigating the cause. They aim to provide an update on their findings shortly.

“We are aware of the recent price activity in the OM market and are actively looking into this matter. 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 diligently working to ascertain the full scope of what transpired and will share more details as soon as we can.”

Among the biggest market gainers in 2024. A partnership with DAMAC Group for a $1B tokenization initiative was announced in January 2025. The OM token is used to power transactions and governance on the Mantra Chain.

Meanwhile, co-founder John Patrick Mullin alleged the movement was likely due to exchanges closing OM positions, which impacted all market exposure.

“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders,” Mullin said in an X post. “The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice.”

Mullin further alleged “intentional market positioning taken by centralized exchanges.”

Sherpas, OMies, and broader crypto community,First off, the team and I greatly appreciate the support that we have been shown over the past several hours, which I believe is a testament to the strength of MANTRA and the loyalty of its investors and community. We have determined that the recent market movements in the OM market were triggered by reckless forced closures undertaken by centralized exchanges on their OM account holders. The timing and depth of the crash suggest that a very sudden closure of account positions was initiated at approximately 3:00 AM UTC on Monday, May 6th, with nearly all signs of liquidation activity on major exchanges commencing around that time. Despite the market showing signs of recovery throughout the day on Monday, May 5th, and no issues being reported by the Chain on a technical level, unfortunately, this was not to be.

Among the biggest market gainers in 2024. A partnership with DAMAC Group for a $1B tokenization initiative was announced in January 2025. The OM token is used to power transactions and governance on the Mantra Chain.

OM-tracked futures recorded over $50 million in liquidations on the long side, a record figure