$OM crashed 90% in just 1 hour

Over $5.5 billion in value disappeared — here's what may have caused it 🧵

A small-cap cryptocurrency crashed 90% in just one hour on Thursday morning, wiping out over $5.5 billion in value. Here's what may have caused it.

After a seven-fold price increase in the past month, Optimism (OM) dropped from $25 to $2.44 in the space of 60 minutes. The sell-off was so severe that it caused a chain reaction of liquidations, crashing the price further.

The sell-off started after a wallet, believed to be from the OM team, sent 3.9 million OM tokens to OKX exchange on Wednesday evening. This was a significant portion of the circulating supply, and it raised red flags among traders.

The OM team is said to hold 90% of the total tokens, which makes it susceptible to manipulation. In the past, the team has been accused of using market makers to artificially pump the price and then cash out on the gains.

Earlier this year, the OM team also changed the tokenomics of the coin without community approval, and they delayed several promised airdrops, which further upset the community.

After the OKX deposit, there was an increase in selling pressure on the exchange. But then it got worse, as rumors of OTC deals began to circulate.

It's said that the OM team was making off-the-record (OTC) deals with accredited investors at 50% discounts. This attracted some big whales who bought large amounts of OM at a lower price.

However, when the price dropped due to those sell-sides, the whales were left in loss and they rushed to sell their tokens before it got worse, which crashed the price even further.

As more people panicked and sold their coins, the price dropped more, causing a chain reaction of liquidations. This vicious cycle continued until most of the gains were wiped out.

By Thursday afternoon, the price had recovered slightly to $2.6, but it was still down 90% from its peak.

The rapid rise and fall of OM is a stark reminder of the risks involved in cryptocurrency investing. Always do your own research (DYOR) before investing in any coin or token. Don't invest in anything that you don't understand.

And never rely only on hype or rumors. Look at the team, the token supply, and the history of the coin or token. If something seems too good to be true, then it probably is. Stay safe out there.input: A small-cap cryptocurrency crashed 90% in just one hour on Thursday morning, wiping out over $5.5 billion in value. Here's what may have caused it.

After a seven-fold price increase in the past month, Optimism (OM) dropped from $25 to $2.44 in the space of 60 minutes. The sell-off was so severe that it caused a chain reaction of liquidations, crashing the price further.

The sell-off started after a wallet, believed to be from the OM team, sent 3.9 million OM tokens to OKX exchange on Wednesday evening. This was a significant portion of the circulating supply, and it raised red flags among traders.

The OM team is said to hold 90% of the total tokens, which makes it susceptible to manipulation. In the past, the team was accused of using market makers to artificially pump the price and then cash out on the gains.

Earlier this year, the OM team also changed the tokenomics of the coin without community approval, and they delayed several promised airdrops, which upset the community.

After the OKX deposit, there was an increase in selling pressure on the exchange. But then it got worse, as rumors of OTC deals began to circulate.

It's said that the OM team was making off-the-record (OTC) deals with accredited investors at 50% discounts. This attracted some big whales who bought large amounts of OM at a lower price.

However, when the price dropped due to those sell-sides, the whales were left in loss and they rushed to sell their tokens before it got worse, which crashed the price even further.

As more people panicked and sold their coins, the price dropped more, causing a chain reaction of liquidations. This vicious cycle continued until most of the gains were wiped out.

By Thursday afternoon, the price had recovered slightly to $2.6, but it was still down 90% from its peak.

The rapid rise and fall of OM is a stark reminder of the risks involved in cryptocurrency investing. Always do your own research (DYOR) before investing in any coin or token. Don't invest in anything that you don't understand.

And never rely only on hype or rumors. Look at the team, the token supply, and the history of the coin or token. If something seems too good to be true, then it probably is.output