MANTRA RWA token OM crashes 90%, investors allege insider dumping

The MANTRA crypto project is embroiled in controversy after its OM token crashed 90% on Sunday, with investors alleging an insider dumped its holdings, wiping out an estimated $5 billion in market value.

MANTRA crypto project is embroiled in controversy after its OM token crashed a whopping 90% on Sunday. The token, which is used to power MANTRA's ecosystem of products and services, plummeted from a high of over $6 to as low as $0.37 in less than 24 hours, wiping out an estimated $5 billion in market value.

The crash, which is one of the steepest single-day drops in crypto history, has sparked accusations of market manipulation. Some investors claim that the MANTRA team or an insider sold a large amount of OM tokens over-the-counter (OTC) and then deleted MANTRA's Telegram group in an attempt to sever communication with investors.

"They scammed it out of people. It's a rug pull all over again, just a very slow rug pull to smaller sized bags over a period of 7 months to be precise, beginning around July 2024," one investor wrote on X, formerly known as Twitter.

The incident has also drawn comparisons to the Terra Luna fiasco, with some investors taking to social media to express their outrage and demand legal action.

"This is a scam. They're stealing people's money. We need to do something about it," one investor wrote.

For his part, ZachXBT responded by saying, "What kind of statement is this OM went down 90% from $5.9B to $500M mkt cap in a single candle."

Another person wrote, "’Reckless liquidations’ is a new one on me."

Investors are now calling for a class action lawsuit to be filed against MANTRA.

"This is outrageous and unacceptable. We demand justice for the victims of this scam," one investor wrote.

The incident is still under investigation, but it could have major implications for both MANTRA and the broader tokenization ecosystem.

If it is found that the MANTRA team was involved in the crash, it could damage the company's reputation and lead to investors losing trust in the project. This could ultimately hinder MANTRA's ability to raise capital and expand its business operations.

However, if it is found that external actors were responsible for the crash, then it could raise concerns about the volatility risks associated with DeFi projects, especially those that are bridging traditional assets.

In a statement on X, MANTRA said that it is aware of the "external activity" that has impacted the OM token price.

"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," the team said.

"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."

The statement comes after the OM token crashed by 90% on Sunday, wiping out an estimated $5 billion in market value. The token, which is a hybrid asset that combines aspects of both a security and a utility token, had been trading at around $6 on Sunday morning. However, the token price then crashed rapidly, hitting a low of $0.37 by Sunday evening.

The token has since recovered slightly and is currently trading at around $1.03. It had reached a high of $9 earlier this year.

MANTRA is a blockchain project that is focused on tokenizing real-world assets (RWAs) and integrating them with Web3. The project has partnerships with Google Cloud and Dubai's DAMAC Group. It also aims to build a decentralized autonomous organization (DAO) to govern the project.

Earlier this year, MANTRA launched its flagship RWA product, O.M.N.I (Over-Mantra Network Interoperability), which is designed to facilitate the seamless integration of RWAs with Web3. The product is powered by the OM token and aims to unlock liquidity for traditional assets and expand the use cases for crypto.

"O.M.N.I is a groundbreaking initiative that will revolutionize the way we think about and interact with financial assets," said Ben Armstrong, host of the popular crypto YouTube channel, "Armstrong and Friends."

"It is a testament to the power of blockchain technology and the vision of the MANTRA team to create a truly interoperable and inclusive future for the Web3 ecosystem."

The integration of RWA assets and DeFi protocols is a key focus for the crypto industry in 2025. Several projects are aiming to bridge the gap between the two worlds and create new use cases for crypto assets.

MANTRA's efforts in this domain are particularly noteworthy, given its partnerships with major institutions and its aim to build a community-governed DAO. The project's future will depend on how it responds to the challenges and opportunities that lie ahead. Nonetheless, the project's vision and technology are poised to shape the future of