Rug Pull or Just Panic? Why Did MANTRA (OM) Crash 90% Overnight?

MANTRA (OM) has suffered a catastrophic 90% price wipeout in what’s now being referred to as the most severe MANTRA crash to date.

It was reportedly sparked by fears surrounding a major forced liquidation event.

The value of OM, the native cryptocurrency fueling Mantra’s real-world asset blockchain ecosystem, nosedived by over 90% as Sunday made way for Monday, marking one of the most extreme price drops the digital asset market has seen this year.

We can see the scale of the damage on the asset’s three-month price chart. For most of the year so far, Mantra’s OM traded stably. Sunday’s overnight spiral plunged OM well below its consistent $6 support level. It now trades at almost a tenth of the price: $0.6965. A relative strength index (RSI) of 14 indicates the token is vastly oversold, as 30 is the threshold marking this.

Of course, if the Mantra team moves quickly and transparently to dispel consumer fears, this could set the stage for a major recovery rebound.

According to the Mantra development team, the catalyst appears to be a “large-scale forced liquidation” on a centralized crypto exchange.

Co-founder John Patrick Mullin addressed the incident on X. He claimed a significant OM holder had set off a chain reaction of automated sell orders. This sudden influx of selling pressure overwhelmed the order books, causing the token’s value to spiral downward at an alarming pace.

Guys let's get a couple things straight:

– The TG was not deleted.
– The Team tokens all remain in custody, verifiable at this address – mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam
– We are actively figuring out why these massive forced liquidations occurred and will provide…

“This wasn’t an insider or developer-driven selloff,” Mullin clarified, in response to a chorus of community concerns. “Our team remains committed. We are still building and actively working to address the situation.”

In followup posts, Mullin also denied theories the team had used their tokens as collateral to take out a massive loan from a centralized exchange: “The team did not have a loan outstanding” and haven’t orchestrated a rug pull.

He also clarified the status of OM token: “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,” Mullin said.

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