The cryptocurrency venture Mantra is coming underneath growing suspicion after its OM token shed 90% of its worth inside a single day. The worth dropped from $6.27 to solely $0.72, erasing greater than $5 billion in market worth. What transpired subsequent solely served to worsen the state of affairs.
Primarily based on blockchain knowledge, Mantra DAO—the venture’s behind-the-scenes group—despatched $26.95 million of OM tokens to a Binance pockets on Monday, April 14. That is simply after the worth’s large dump, which triggered purple flags amongst observers.
Detractors cite a disturbing truth: the Mantra crew owns round 90% of all OM tokens. The excessive focus of possession and timing of the alternate transfers have fueled accusations of potential insider promoting.
With 90% already dumped in $OM, it looks as if the $OM crew is about to promote extra.
2 hours in the past, the @MANTRA_Chain DAO staked pockets despatched 38M $OM ($26.96M) to #Binance Chilly Pockets.https://t.co/nSttgmuqzg pic.twitter.com/Vsc2q346fC
— Onchain Lens (@OnchainLens) April 14, 2025
Mantra CEO Denies Token Dumping Accusations
Mantra chief govt JP Mullin has rebutted such allegations. He stated the crew and traders didn’t dump their holdings through the crash.
As a substitute, Mullin attributed the worth decline to “compelled liquidations” instigated by cryptocurrency exchanges. Such liquidations happen when exchanges promote merchants’ holdings robotically after they’re unable to cowl margin calls.
However his account is to not everybody’s liking. Numerous impartial analysts have monitored suspicious token transfers that time to a distinct narrative.
OM value has sustained a steep drop within the final week. Supply: CoinMarketCap
On-Chain Detective Work Reveals Suspicious Transfers
Crypto analyst Max Brown discovered that Mantra transferred almost 4 million OM tokens to cryptocurrency alternate OKX shortly earlier than costs started to say no.
The issue for investigators is that when tokens are moved to centralized exchanges like Binance or OKX, they turn into rather more difficult to hint. That is basically a blind spot the place the tokens could be disposed of whereas forsaking no clear path on public blockchains.
MANTRA CHAIN $OM CRASHED 90% IN AN HOUR AND $5.5 BILLION GOT WIPED OUT.
HERE’S HOW AND WHY IT COULD HAVE POSSIBLY HAPPENED
IT ALL STARTED YESTERDAY WHEN A POSSIBLE $OM TEAM WALLET DEPOSITED 3.9 MILLION OM TOKENS ON OKX.
IT WAS WELL KNOWN IN THE CRYPTO SPACE THAT OM TEAM… pic.twitter.com/9ZQNw4Yrla
— Max Brown (@MaxBrownBTC) April 13, 2025
Whereas analysts can not show it for a incontrovertible fact that insiders bought off tokens, the gradient of actions into exchanges simply forward of the worth tumble definitely provides room for critical doubt.
Exchanges Present Various Account Of The Crash
Main cryptocurrency exchanges launched investigations as to what triggered the spectacular fall of the OM token.
Binance, the biggest crypto alternate by way of buying and selling quantity, corroborates Mullin’s account. In early findings, they point out cross-exchange liquidations almost definitely triggered the crash, which might help the CEO’s rationalization.
OKX paints a distinct image. The alternate cited “main adjustments” in OM’s tokenomics as a attainable trigger. In addition they famous that a number of blockchain addresses had despatched giant portions of tokens to exchanges through the time of the crash.
The contradicting accounts by varied gamers available in the market have left traders unsure about what really transpired. With $5 billion of market worth misplaced and no certainty, confidence within the venture has been severely undermined.
Featured picture from Blueberry Markets, chart from TradingView
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