Mantra (OM), a cryptocurrency project focused on real-world assets, experienced a dramatic 90% price drop over the weekend, leaving many wondering what happened. The price plummeted from $6.35 to just $0.37 in a single day, wiping out billions in market capitalization.
Millions in OM Tokens Moved Before the Crash
Blockchain analytics firm Lookonchain revealed that a staggering $227 million worth of OM tokens were transferred to major exchanges like Binance and OKX before the crash. This involved at least 17 wallets moving 43.6 million OM tokens – a significant 4.5% of the circulating supply.
Two of these wallets, according to Arkham Intelligence, are linked to Laser Digital, a strategic investor in Mantra. This raised immediate suspicion about insider selling.
Laser Digital Denies Involvement
Laser Digital strongly denied any involvement in the price drop, stating that the wallets identified by Lookonchain as transferring tokens to OKX were not theirs. They clarified that they did not deposit any OM tokens to OKX.
CEO Blames Exchanges
Mantra’s CEO, JP Mullin, pointed the finger at cryptocurrency exchanges, claiming they unnecessarily closed large positions during periods of low liquidity, contributing to the massive price collapse.
The Aftermath
At the time of writing, OM is trading around $0.595, still significantly down from its peak. The situation highlights the volatility of the cryptocurrency market and the importance of due diligence before investing. The mystery of who exactly caused the massive price drop remains unsolved.
