Mantra breaks up by 87%: Binance blames liquidations and token supplier Shift
- Mantras OM-token crashes by 87% after compulsory liquidations and changes to offer; Binance blame external factors.
- Mantra denies insider trading, while legal problems and market volatility shake the trust of investors.
The cryptocurrency market panic when OM, the Mantra token, crashed by 87 % in the daily value. Billions of market capital disappeared when the token price fell from $ 6 to $ 0.37 on April 13.
Börsen platforms like Binance lead Harmful offer effects and broad liquidations as the main reasons for the market tension. One Investigation With claims for accounting obligation, this situation seems just as necessary as after the Terra Luna incident.
Forced liquidations and stock market activity
According to Binance, the main reason for the crash was the cross -stock market liquidation, which led to a resolution of levered positions worth $ 71 million within 24 hours. The largest volume of cross -stock market liquidations came from Bybit during this period. The inventory of 888 million OM-tokens was increased by 100 % to 1.77 billion, while an annual inflation of 3 % was used, which increased sales pressure and value scatter.
Mantra co-founder John Patrick Mullin claimed On X that there was a massive, compelling liquidation when a large OM owner was allowed to sell his position on an unknown centralized stock exchange. Mullin did not want to name the name of the stock exchange, mentioned however that it triggered the forced closure of numerous positions, which started an increasing sales chain.
According to him, these recent events were unprecedented, while team officers contested that they had contributed to the sales activities. A large number of om-tokens were moved from their wallets to Binance and OKX before the market decline in the Onchain recordings was discovered during the collapse.
Dementis, reactions and legal questions
The mantra team officially rejected any involvement in the helicopter crash. The team announced on X that ruthless liquidations caused the problem, but the incident was not caused internally. Dustin McDaniel, the head of the community, commented on Telegram similar to the investigation measures that the team actively carried out.
MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025
The onchain analyst zachxbt questioning The ambiguous claim because he wanted to understand how a token could experience such a drastic drop in 90 % within a single trading session without internal measures. Some users believed that mantra insiders and a market maker sold around 90 % of the available mantra tokens through OTC transactions. According to Mullin, OM has been in circulation since 2020, while the team has no complete control over the token.
The situation spoke when a court in Hong Kong six members of the Mantra Dao promptto present their financial documents according to reported cases of embezzlement of funds. In the course of the news, more and more doubts about Mantra internal governance arise.
Market capitalization breaks one due to Tokenomics shift
On April 14th, OM market capitalization was $ 782 million with $ 7.4 billion. The increased OM offer in conjunction with the cancellation of the offer limit caused by Binance to decide that foreign positions are more risky. OM has introduced any risk control measures since the end of 2023, while Leverage limits and trading warnings have been added for OM transactions.
Mullin von X Spaces gab During the post-crash session anthat the project is still under construction, but will finally be stabilized. The massive OM token sale on this day was 43.6 million tokens worth $ 227 million, which indicates a low trust in investors. Analysts found that the maximum potential value of OM exceeds the TVL numbers many times over, since the current TVL is $ 13 million.
As mentioned in our previous contribution, Mantra has secured the license for virtual assets from Vara in the past few months and at the same time concluded a tokenization agreement with the real estate company Damac worth $ 1 billion. With this development, the project achieved the top position in the area of RWA (Real-World-Asset) tokenization. The market attack could mean the loss of authority for mantra and damage the trust of the investors.
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