The OM token, native to the Mantra blockchain, suffered a severe market crash on April 13, dropping from around $6.30 to below $0.50 within a single day.
According to CryptoSlate’s data, this sharp decline wiped out more than $5 billion from its market capitalization, which nosedived from approximately $6 billion to just $530 million.
While OM has slightly recovered to $0.71 and has a market cap nearing $700 million, it still reflects a massive loss in value.
Mantra is a Layer 1 blockchain built on Cosmos SDK that focuses on real-world asset tokenization with built-in regulatory compliance. Last month, the platform received a virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Insider activity or rugpull?
The collapse has drawn intense scrutiny, with many questioning whether a technical exploit, insider activity, or a broader liquidity event caused it.
Blockchain investigator ZachXBT raised the possibility of a hack or vulnerability being involved in the incident, saying:
“I wonder if a few large wallets got hacked or an exploit (there were a few large OM holder thefts recently).”
However, other community members pointed to suspicious sell-offs that may have come from project insiders. Crypto analyst Nay highlighted patterns suggesting possible insider involvement.
According to Nay, multiple clean wallets holding tens of millions in OM tokens actively moved funds between centralized exchanges. He also claimed that over $70 million was transferred to exchanges in recent months using just one intermediary wallet—an action he described as highly questionable.
Meanwhile, the scale of the crash has led many to compare it to the 2022 Terra LUNA collapse.
Mantra response
In a public statement, Mantra co-founder John Patrick Mullin claimed that the crash was triggered by forced liquidations executed by centralized exchanges (CEXs).
He alleged several large positions were abruptly closed without notice, leading to rapid sell pressure during low-liquidity trading hours.
Mullin said the situation was worsened by poor timing, as the liquidations occurred on a quiet Sunday evening. He called the actions either grossly negligent or potentially intentional.
Mullin explained:
“Centralized exchange partners play an important role in providing liquidity to projects like ours. We work closely with them, however they continue to exercise enormously high levels of discretion. When discretionary powers are exercised without due internal and external oversight, dislocations like what recently happened can and will occur, hurting both projects and investors alike.”
He also clarified that no one from the Mantra team, its core advisors, or its investors had sold or unlocked tokens, which remain subject to a public vesting schedule.
He said:
“To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact, as shared last week in our latest token report. Our token wallet addresses are online and visible.”
Although he didn’t name any exchanges directly, Mullin stated that the team was compiling a list and would release more details.
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