OM Token Crash Summary 💥💥💥

- What Happened: On April 13, 2025, MANTRA's OM token plummeted ~90% in hours, dropping from ~$6.30 to as low as $0.37-$0.58

A snapshot of the rapid crash of MANTRA’s OM token, which lost ~90% of its value in a matter of hours on April 13, 2025, erasing billions in market cap and leaving investors reeling.

What Happened:

* After reaching a high of ~$9.11, OM token plummeted from $6.30 at 08:00 to as low as $0.37-$0.58 by 14:00 on April 13, 2025.

* This fall wiped out a significant portion of OM’s market cap, which varied in reports but was estimated at $3.5-$10 billion.

* By 22:00, OM had recovered slightly from the deepest lows, trading in the $0.60-$1.00 range and erasing more of the lost market cap.

* At the time of writing (April 14, 24:00), OM was still down over 93% from its February 23 peak and remained in the top 100 cryptocurrencies.

Reported Causes:

* Official Statement: MANTRA’s team, including co-founder JP Mullin, attributed the crash to “reckless liquidations” or a “massive forced liquidation” by a large investor on a centralized exchange (CEX), not any actions by the team.

* Community Speculation: Several posts on X and reports claimed that the team dumped millions of OM tokens (e.g., 3.9M via OKX) after announcing their departure from the project.

* It’s alleged that the team members initially applied for withdrawal on March 27, 2025, and had full control over ~90% of OM’s supply.

* Some reports also mentioned shady OTC deals and supply inflation concerns that were raised prior to the crash.

* Unconfirmed: Despite reports and screenshots, no definitive proof has emerged to confirm either team dumping or external liquidations, as both sides lacked full transparency.

Impact:

* OM’s market cap fell drastically, varying from $485 million to $644 million in different reports, knocking it out of the top 20-30 cryptocurrencies and placing it at #100+.

* The rapid price movements and huge price discrepancies across exchanges indicated significant trading volume, with some reports showing $113M and others $368M in 24h volume.

* This volume signaled mass liquidations, leading to rapid price fluctuations.

* Investors reported devastating losses from the crash, with some comparing it to the 2022 collapse of Terra Luna and its LUNA token.

* A Reddit user reported losing $300,000 in a few hours due to a leveraged short position that went against them.

* Another user mentioned a trader on FTX who lost $20 million on a single OM trade.

Team Response:

* Community lead Dustin McDaniel and Mullin responded to users on X, denying dumping allegations and stating they are investigating the matter.

* According to users, MANTRA’s Telegram group was closed to new users during the chaos, making it difficult for investors to reach the team.

* A time and place for an AMA session on X were announced on Sunday, April 14, 2025, where the team planned to address concerns.

Current Status (as of April 14, 2025):

* After bouncing slightly from the deepest lows, OM was trading in the $0.52-$1.00 range.

* Sentiment on X was mixed, with some users calling it a scam or a “rug pull,” while others saw it as a buying opportunity if the team could rebuild trust.

* Despite the crash, no clear resolution had been reached yet, and the team’s AMA was expected to provide more details.

Prior Red Flags:

* Before the crash, community members had raised concerns about MANTRA’s tokenomics, including the team’s control over a large portion of the token supply and delays in airdrops.

* These concerns sparked discussions about the project’s long-term sustainability and the potential for mishandling funds.

* As crypto markets are known for speculation and volatility, this crash highlighted the risks of centralized control, especially when combined with low liquidity, which can be quickly drained.output: A snapshot of the rapid crash of MANTRA’s OM token, which lost ~90% of its value in a matter of hours on April 13, 2025, erasing billions in market cap and leaving investors reeling.

What Happened:

* After reaching a high of ~$9.11, OM token plummeted from $6.30 at 08:00 to as low