The cryptocurrency undertaking Mantra is coming beneath 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.
Based mostly on blockchain information, Mantra DAO—the undertaking’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 reality: the Mantra workforce owns round 90% of all OM tokens. The excessive focus of possession and timing of the trade 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 govt JP Mullin has rebutted such allegations. He stated the workforce and buyers didn’t dump their holdings through the crash.
As a substitute, Mullin attributed the worth decline to “compelled 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. Varied unbiased analysts have monitored suspicious token transfers that time to a unique narrative.
OM worth 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 trade OKX shortly earlier than costs started to say no.
The issue for investigators is that when tokens are moved to centralized exchanges like Binance or OKX, they turn into way more difficult to hint. That is basically a blind spot the place the tokens could be disposed of whereas abandoning 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’t show it for a incontrovertible fact that insiders bought off tokens, the gradient of actions into exchanges simply forward of the worth tumble definitely offers 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 trade by way of buying and selling quantity, corroborates Mullin’s account. In early findings, they point out cross-exchange liquidations almost certainly brought about the crash, which might assist the CEO’s clarification.
OKX paints a unique image. The trade cited “main adjustments” in OM’s tokenomics as a attainable trigger. Additionally they famous that a number of blockchain addresses had despatched giant portions of tokens to exchanges through the time of the crash.
The contradicting accounts by varied gamers available in the market have left buyers unsure about what really transpired. With $5 billion of market worth misplaced and no certainty, confidence within the undertaking has been severely undermined.
Featured picture from Blueberry Markets, chart from TradingView
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