The native token of the Mantra ecosystem (OM) has experienced a catastrophic price collapse

The native token of the Mantra ecosystem (OM) has experienced a catastrophic price collapse, dropping over 90% in just 24 hours.

The native token of the Mantra ecosystem (OM) has experienced a catastrophic price collapse, dropping over 90% in just 24 hours.

In response to the crash, Mantra founder JP Mullin has issued a statement attributing the price action to “reckless forced closures initiated by centralized exchanges on OM account holders” rather than any fundamental issues with the project or token sales from the team or investors.

The price collapse has wiped out most of OM’s recent gains, with the token now trading at $0.4565 over the past 24 hours.

Mantra’s Explanation of the OM Token Collapse

Mantra founder JP Mullin has identified what he describes as exchange-initiated liquidations as the primary cause of OM’s price crash.

The timing and severity of the collapse suggest that there may have been negligence or possibly intentional market manipulation by centralized exchanges.

“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders,” Mullin stated in a part of his statement.

“The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice.”

Mullin explained that the collapse occurred during “low-liquidity hours on a Sunday evening UTC (early morning Asia time).”

This is a period when trading volumes are typically lower and price impacts from large orders can be larger.

This timing choice, according to the Mantra founder, “points to a degree of negligence at best, or possibly intentional market positioning taken by centralized exchanges.”

The statement explicitly denied any involvement from the Mantra team or its investors in the sell-off: “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.”

Mullin also noted that OM’s tokenomics remain intact despite the price collapse, as reported by the project in its recently published token report.

He further highlighted the transparency of the project, stating that “our token wallet addresses are online and visible.”

Binance Response and Risk Control Measures

Binance, one of the major exchanges where OM is traded, has issued an official statement through its Customer Support account on X regarding the token’s price volatility.

According to Binance, their “initial findings indicate that the developments over the past day are a result of cross-exchange liquidations.”

The exchange also revealed that it had been implementing risk management measures for the OM token since October of last year.

“Since October of last year, Binance has implemented various risk control measures including reducing the leverage levels, with regard to the $OM token in order to mitigate the potential impact on the asset.”

Binance also disclosed that it had been warning users about potential risks associated with the OM token since January 2025.

The exchange explained,

“Binance has also issued a pop-up warning for $OM on its spot trading page to inform users that the token has undergone significant changes to its tokenomics increasing its supply.”

The founder of Mantra subsequently posted a more accommodative response to Binance’s announcement. Despite the charges of exchange carelessness in Mullin’s statement.

“We’ve been in touch with the Binance team, and they have been highly communicative, helpful, and supportive. We want to thank Binance and their team for the way they’ve handled this tough situation,” Mullin wrote.

Market Context and Project Background

The OM token price collapse comes after a period of strong gains for the Mantra project. The token reached an all-time high of $8.99 just two months ago in February.

In his statement, Mullin positioned Mantra as a resilient project that has persisted through difficult market conditions.

“MANTRA is a project that has survived and operated throughout multiple market cycles. When others stopped building, we kept going. This is no exception,” he stated, framing the current crisis as another challenge the team will overcome.

The founder also highlighted recent achievements to reinforce investor confidence.

He mentioned that Mantra had become “the first DeFi protocol licensed by Dubai’s VARA. He also referred to “integrations and initiatives that will broaden and strengthen our ecosystem.”

These points appear intended to shift focus from the immediate price crisis to the project’s longer-term development.