Mantra Crypto Crash: $OM Loses 90% Amid Insider Sell-Off Fears

The cryptocurrency world was shaken on Sunday as MANTRA crypto crashed, $OM token crashed dramatically. In just 24 hours, the token dropped over 90%, wiping out billions in market value. Many in the crypto community are accusing insiders of selling off large amounts of $OM. The MANTRA team, however, blames the crash on "reckless liquidations" and denies any wrongdoing.

Mantra Price Crashes By Over 90%

According to CoinMarketCap, the price of $OM fell from $6.3 to just $0.4 in a single day. That’s more than a 90% drop. The token has since recovered slightly and is trading around $1.03, but has dropped further to $0.7. Still, the crash caused major panic across the crypto market. Some investors claim over $10 billion in market cap was lost.

The crash started after a wallet connected to the team deposited 3.9 million tokens to the OKX exchange. This triggered heavy selling pressure and a rapid fall in price. Critics compared the situation to the 2022 Terra Luna collapse.

MANTRA’s price is currently floating at $0.7608 with a drop of 87.87% in just 24 hours. Its market cap also dropped to $737.38. Despite the sink, its trade volume having massively increased by 2908.82% and went to $2.11 billion.

Source: CoinMarketCap

Insiders Involved in the Crash?

There’s an ongoing debate about MANTRA's role in the crash. Some believe the insiders may have sold large amounts, as wallets linked to them moved millions of tokens to exchanges.

The price of $OM dropped sharply after 17 wallets sent 43.6 million tokens (worth $227 million at the time) to exchanges like Binance and Bybit. This was 4.5% of the circulating supply. Arkham Intelligence linked two wallets to Laser Digital, a strategic investor in MANTRA Chain. Large transfers like these often signal selling, which can drive prices down. As traders saw the movement, panic selling followed, causing the price to collapse. The wallets likely sold their $OM, worsening the drop. Source:X

MANTRA Denies Their Involvement in the Crash

After the $OM token drop, the officials denied involvement. They said the drop was caused by "reckless liquidations" from a large investor, not the project or its team. Co-founder John Patrick Mullin explained that a major holder had a forced liquidation on an exchange, which led to the price drop, but didn’t name the exchange.

To reassure the community, the team posted on X, stating the project is still "fundamentally strong" and they are not leaving. They also confirmed that the team’s tokens are safely stored and shared wallet addresses for transparency. Mullin clarified that their Telegram group wasn’t deleted, just closed to new members.

Source:X

What Next?

The MANTRA is investigating the drop and promises to share more details soon, insisting the project is safe and not a scam. However, many in the community are skeptical, with some suspecting a rug pull and others waiting for proof that the team didn’t sell tokens. The market crash triggered by crash has shaken investor confidence. While the token has recovered slightly, it remains far below its previous highs, and its future depends on the team’s actions and the market’s response.