The most up-to-date collapse of the mantra (OM) token triggered comparisons with the notorious Terra -Ekosystem -Crotn in May 2022, with some commentators mantra described as “next terra”. Nevertheless, many in the neighborhood argue that the 2 projects don’t have anything in common than visual similarities in the worth diagrams.
“While it’s tempting to attract parallels between the recent crash of OM and the collapse of Terra Luna, they’re fundamentally very different events,” said Ben Yorke, Vice President of the Ecosystem at The Decernalized Finance (Defi) project Woo, in an announcement on CoinTelegraph.
Alexis Sirkia, chairman of the Defi Infrastructure Project Yellow Network, agreed. “There aren’t any real similarities, other than the visual price,” he said.
Visual similarity – different numbers
On April 13, Mantras OM -TOKEN fell by 92% and fell from over $ 6 to about $ 0.52 inside just a few hours. According to Coingecko, OM lost the market capitalization of 5.4 billion US dollars in lower than 4 hours.
In contrast, Terraclassicusd (formerly VAT) needed five days to lose an analogous percentage and deliver $ 17.2 billion.
Mantra's OM crash in April 2025 against USTC (formerly VAT) Crash in May 2022 (seven-day chart). Source: Coingecko
The Luna crash was steadily more steadily than the OM -TOKEN and USTC. It began to diminish for a while before the VAT -TOKEN was discounted on May 9, 2022.
Despite significant structural differences between the projects, the visual similarity of the worth diagrams has led to comparisons by the observers.
In contrast to Mantra, the collapse of Terra was systemic
Sirkia von Woos Yorke and Yellow Network agreed that Terra's collapse was systemic and occurring resulting from the failure of its algorithmic stable coin, while the mantra had not proven to be a systemic defects.
“OM appears to be a case of mismanagement or negligence,” said Yorke, adding that the mantra crash included a “large variety of insider-hero tokens”, which moved within the exchange, which triggered cascading liquidations.
Source: ZachxBt
“The problem was not a structural mistake within the protocol, but a collapse of the token handling and confidence,” he noted.
“Mantra shouldn’t be broken. There was no failure. This is a market structure problem, no protocol failure,” said Sirkia, emphasizing that only an event like an intelligent contractual error could indicate a significant issue within the protocol. He added:
“Terra collapsed due to the constructing. Mantra went through a market -oriented correction. The team remained consistently transparent. After the decline, OM fell over 200%and showed an actual demand and faith in the neighborhood. This style of recovery never happened with Luna.”
The Mantra comment from Yorke and Sirkia marks the second day after the OM crash, whereby the token was easily recovered to $ 0.80 after a brutal sale of over 6 to 0.50 USD per token on April 13.
According to the newest update of the Mantra-CEO John Mullin, Mantra expects to share a post-mortem report during which the events are described that result in the crash of OM token in the following 24 hours.
