Mantra's most up-to-date token collapse shows an issue within the crypto industry of fluctuating weekend liquidity levels, which cause additional downward volatility which will have tightened the crash of the token.
The price of the mantra (OM) token collapsed on Sunday, April 13, by over 90% from around $ 6.30 to lower than $ 0.50, which caused the accusations of market manipulation under disillusioned investors, reported Cintelegraph.
While blockchain analysts are still assembling the explanations for the OM collapse, the event shows some necessary problems for the crypto industry, based on Gracy Chen, CEO of the Bitget Cryptocurrency Exchange.
“The OM -Token crash has revealed several critical problems that we see not only in OM, but in addition as an industry,” said Chen in the course of the Chainreacection Daily X Show from CoinTelegraph and added:
“If it’s a token that is simply too concentrated, the concentration of assets and the very opaque government in addition to sudden exchange inflows and outflows. […] In combination with the forced liquidation in very low liquidity times in our industry, the nice acceptance created. “
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Today @rkbaggs and @zvardai from @Gracybitget, CEO from @Bitgetglobal on #chainrection, might be accompanied to unpack the issue! Https: //t.co/opoyu1iorc
– CoinTelegraph (@coinelegraph) April 15, 2025
At least two wallets related to the Mantra Investor Laser were included in 17 token pockets, along with 43.6 million OM -OTOKEN -at that point price around 227 million US dollars -the Blockchain Analytics platform Lookonchain reported on April 13 on April thirteenth.
However, the CEO of Mantra, John Mulllin, contested the allegations related to large-scale token transfers from Mantra investors, reported CoinTelegraph on April 14.
Mantra published an evidence after the crash on April 16 and repeated that the OM-Crash didn’t include sales with token sales of the project itself and that the Mantra team examined the incident. The report didn’t explain the short movement of OM -OTOKEN to exchange and subsequent liquidations.
Exchange movements indicate a robust “insider dumping” signal
While the precise reason for the collapse stays unclear, Mullin attributed the crash to “massive forced liquidations” on centralized stock exchanges in the course of the time with low liquidity on Sunday.
Mullin told an X user that the mantra team believes that an exchange was “specifically” accountable, said the team still “discovered the main points” and stated that the exchange in query was not a bony.
“I believe Okx was the foremost exchange that was accused of so -called liquidations,” said Chen, adding that the big transmissions to several stock exchanges raised considerable red flags. She added:
“I checked out the Onchain data that show that thousands and thousands of OM -Tots were laid within the centralized exchange. This is a really strong signal for insider dumping.”
The problems with weekend liquidity have also affected large cryptocurrencies akin to Bitcoin (BTC).
The lack of weekend trading volume together with the liquidity, which was liquidated across the clock of Bitcoin, led to a correction of Bitcoin below 75,000 US dollars on Sunday, April 6, reported CoinTelegraph.
The correction on April sixth could have occurred, since Bitcoin is the one large tradable asset on the weekend that is out there when it comes to the concerns in regards to the global trade war.
