The cryptocurrency world is buzzing about Mantra DAO’s OM token, which lost a staggering 90% of its value in a single day, wiping out over $5 billion in market capitalization. The price plummeted from $6.27 to just $0.72 – a massive drop that has raised serious questions.
Millions of OM Tokens Moved to Binance
Adding fuel to the fire, blockchain data revealed that Mantra DAO transferred nearly $27 million worth of OM tokens to a Binance wallet just after this dramatic price crash. This move, coupled with the fact that the Mantra team reportedly owns around 90% of all OM tokens, has sparked accusations of insider selling. Many believe the team cashed out before the crash.
CEO Denies Wrongdoing, Blames Liquidations
Mantra’s CEO, JP Mullin, denies these accusations. He claims the price drop was due to “forced liquidations” on cryptocurrency exchanges, where traders’ assets are automatically sold when they can’t meet margin calls.
Suspicious Transfers and Conflicting Narratives
However, independent analysts are skeptical. Crypto analyst Max Brown, for example, discovered a transfer of nearly 4 million OM tokens to OKX before
the price crash. The problem? Once tokens reach centralized exchanges like Binance or OKX, tracking them becomes incredibly difficult.
Binance supports Mullin’s explanation, pointing to cross-exchange liquidations as the likely cause. But OKX offers a different story, citing “major changes” in OM’s tokenomics and large token transfers to exchanges around the time of the crash.
The Mystery Remains
The conflicting accounts from exchanges and the suspicious timing of the token transfers leave investors deeply uncertain about what really happened. With billions lost and no clear answers, trust in Mantra DAO has taken a massive hit. The investigation continues, but the lingering suspicion of insider trading casts a long shadow over the future of OM.
