The cryptocurrency challenge Mantra is coming below rising suspicion after its OM token shed 90% of its worth inside a single day. The worth dropped from $6.27 to solely $0.72, erasing greater than $5 billion in market worth. What transpired subsequent solely served to worsen the scenario.
Primarily based on blockchain information, Mantra DAO—the challenge’s behind-the-scenes group—despatched $26.95 million of OM tokens to a Binance pockets on Monday, April 14. That is simply after the worth’s huge dump, which triggered crimson flags amongst observers.
Detractors cite a disturbing truth: the Mantra workforce owns round 90% of all OM tokens. The excessive focus of possession and timing of the alternate transfers have fueled accusations of potential insider promoting.
With 90% already dumped in $OM, it looks as if the $OM workforce is about to promote extra.
2 hours in the past, the @MANTRA_Chain DAO staked pockets despatched 38M $OM ($26.96M) to #Binance Chilly Pockets.https://t.co/nSttgmuqzg pic.twitter.com/Vsc2q346fC
— Onchain Lens (@OnchainLens) April 14, 2025
Mantra CEO Denies Token Dumping Accusations
Mantra chief government JP Mullin has rebutted such allegations. He mentioned the workforce and traders didn’t dump their holdings throughout the crash.
As a substitute, Mullin attributed the worth decline to “pressured liquidations” instigated by cryptocurrency exchanges. Such liquidations happen when exchanges promote merchants’ holdings mechanically after they’re unable to cowl margin calls.
However his account is to not everybody’s liking. Numerous unbiased analysts have monitored suspicious token transfers that time to a unique narrative.
OM value has sustained a steep drop within the final week. Supply: CoinMarketCap
On-Chain Detective Work Reveals Suspicious Transfers
Crypto analyst Max Brown discovered that Mantra transferred practically 4 million OM tokens to cryptocurrency alternate OKX shortly earlier than costs started to say no.
The issue for investigators is that after tokens are moved to centralized exchanges like Binance or OKX, they change into way more difficult to hint. That is basically a blind spot the place the tokens could be disposed of whereas forsaking no clear path on public blockchains.
MANTRA CHAIN $OM CRASHED 90% IN AN HOUR AND $5.5 BILLION GOT WIPED OUT.
HERE’S HOW AND WHY IT COULD HAVE POSSIBLY HAPPENED 🧵
IT ALL STARTED YESTERDAY WHEN A POSSIBLE $OM TEAM WALLET DEPOSITED 3.9 MILLION OM TOKENS ON OKX.
IT WAS WELL KNOWN IN THE CRYPTO SPACE THAT OM TEAM… pic.twitter.com/9ZQNw4Yrla
— Max Brown (@MaxBrownBTC) April 13, 2025
Whereas analysts can not show it for a proven fact that insiders offered off tokens, the gradient of actions into exchanges simply forward of the worth tumble definitely provides room for severe doubt.
Exchanges Present Various Account Of The Crash
Main cryptocurrency exchanges launched investigations as to what triggered the spectacular fall of the OM token.
Binance, the biggest crypto alternate when it comes to buying and selling quantity, corroborates Mullin’s account. In early findings, they point out cross-exchange liquidations most probably prompted the crash, which might help the CEO’s clarification.
OKX paints a unique image. The alternate cited “main adjustments” in OM’s tokenomics as a potential trigger. Additionally they famous that a number of blockchain addresses had despatched massive portions of tokens to exchanges throughout the time of the crash.
The contradicting accounts by numerous gamers available in the market have left traders unsure about what really transpired. With $5 billion of market worth misplaced and no certainty, confidence within the challenge has been severely undermined.
Featured picture from Blueberry Markets, chart from TradingView
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