OM Price Drops by Over 90%, Triggering Speculation of a Colossal Rug Pull

The events and transfers before the plunge point toward a calculated move that ruined the token's stability and value

The price of Mantra (OM) saw a steep decline of over 90% in a short period, triggering speculation of a colossal rug pull within the crypto markets, squashing over $5 billion from the market cap in no time. The events and transfers before the plunge point toward a calculated move that ruined the token’s stability and value.

The drop in the Mantra (OM) price raised many eyebrows just before the week’s trade. Mainly because Mantra was considered one of the fundamentally strong tokens and ranked number 1 in Real World Assets (RWA) tokens. In times when the markets are recovering from the latest bearish action, such events raise huge suspicion. The OM price was trading above $6, while the trading volume remained constrained below $100 million. In no time, the volume rose above $2 billion, which slashed the price by over 93% to as low as $0.43 in no time.

Why Mantra (OM) Price Drop Drastically? Was it a Pre-Planned Rug-Pull?

It all started when a single transaction was processed of a wallet linked to the Mantra team that sent over 3.9M OM to Okex. This raised huge concerns as 90% of the token supply is controlled by the insiders, which could hurt the token’s value anytime, which cropped up. The OM price dropped from $6 to $0.48, wiping out over $6 billion from the market cap.

A month ago, the platform launched an airdrop and before this, they had blacklisted more than 50% of wallets, calling them ‘bots’ without any transparency. This followed a series of rumors that shook the confidence over the token. Insiders were allegedly running OTC token deals at 50% discounts, which triggered panic selling, stop-loss cascades and leverage liquidations, while most of them had no idea of what was going on behind the scenes.

The OM price crash has shaken the entire crypto market with the excessive greed of the Mantra team. Since Q3, 2023, the OM token has been surging with a 200x upswing and the reason behind this jump was not fundamental but market manipulation. The changed tokenomics, controlled 90% supply, delayed community airdrop, OTC deals and Tier-1 market makers who inflated prices over the past 2 years.

What’s Next for the Mantra (OM) Price? Will it Recover or be the Next LUNA?

Initially, the dump was triggered by the sale of 4 million tokens, and as the liquidity was low on weekends, the price dropped below $3, pushing the OTC buyers into a loss. In no time, the liquidation cascade happened, and the MMs & OTC buyers rushed to sell first, causing the 90% dump. During all this, the second-largest wallet was delegating and sending OM tokens to exchanges.

It points towards a perfectly planned dump to rug the community that was executed. The Terra ecosystem created a new token to try to salvage the platform but failed. The same thing happened with the FTT token as well. This suggests that once the investors lose their confidence, the token’s future remains in the dark. While the people behind the Terra & FTX collapse were put on trial, the founders and CEOs of Mantra may also face a similar consequence.

This Statement Is Not Investment Advice

The crypto market is known for its high volatility and risky nature. This analysis is intended for informational purposes and should not be construed as direct investment advice. Before making any investment decisions, it is advisable to conduct thorough research, seek professional financial advice, and carefully consider your own investment goals, risk tolerance, and legal standing.

Any investment in cryptocurrencies carries inherent risks, including the potential loss of invested capital. It is crucial to invest wisely, responsibly, and only amounts that you can afford to lose.

This analysis is based on the current market trends and news events at the time of writing. As the crypto market is dynamic and subject to constant change, any conclusions or predictions may vary over time. It is recommended to stay updated with the latest developments and make informed decisions accordingly.

This analysis is not an endorsement or solicitation to invest in any particular cryptocurrency or engage in any illegal activity. All investment decisions should be made independently and with full awareness of the risks involved.

The post Mantra Price Drops Over 90% After Insiders Engage in a Planned Dump to Rug Community appeared first on Web3 Today.

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