Binance Addresses Mantra's Collapse After $74 Million in Liquidations

Mantra’s OM token experienced a dramatic crash over the weekend, plummeting from $6.31 to just $0.70 within one hour. This sharp decline raised widespread concerns in the cryptocurrency community. Binance, one of the leading global cryptocurrency exchanges, responded by clarifying the reasons behind the collapse and denied any involvement in the token’s downfall. According to a statement from Binance on its official X account, the crash was caused by cross-exchange liquidations. The platform noted that high leverage and rapid sell-offs across multiple exchanges contributed to the sudden price drop. Binance emphasized that it had implemented risk control measures for OM, including reducing leverage limits to limit volatility. Back in January, Binance had warned users about significant changes to OM’s tokenomics. The exchange had added warning notifications to the Mantra spot trading page to alert users about potential risks. Binance introduced alert systems as part of its ongoing efforts to enhance transparency in trading and protect against unexpected token behavior. Over $74 Million Liquidated in 24 Hours Following the crash, OM recorded a liquidation volume of approximately $74.52 million within 24 hours. This volume surpassed that of Ethereum’s during the same timeframe. The scale of the losses attracted closer scrutiny from the community, sparking accusations directed at centralized platforms, which Binance addressed directly. Public reaction intensified when investigators revealed that Mantra employees were allegedly controlling around 90% of the total OM token supply. Binance stated that it continuously monitored the situation but refrained from commenting specifically on supply issues. The exchange expressed its readiness to take necessary actions to protect users and maintain platform security. The cryptocurrency market is facing increasing challenges related to fraud and scams. Both Shiba Inu and Ripple Labs have stepped up their alert systems in response to the rising number of AI-generated fake content imitating trustworthy employees. Binance has implemented these security measures as part of ongoing efforts by leading trading platforms to minimize systemic risks. #CryptoForBeginners #CryptoInvestingTips #LearnCrypto #BeginnerCryptoGuide #HowToInvestInCrypto