OM digital token plunges by 90% in 2 hours

Editor’s note: not investment advice!

on April 13, the OM token, which belongs to the MANTRA project ecosystem, collapsed by more than 90% in less than two hours. The sharp drop in price — from $ 5.7 to about $ 0.38 — caused serious concern among investors and raised suspicions of possible manipulation or technical failure. At the time of publication, the asset’s price had partially recovered to around $ 0.68.

MANTRA representatives said that the team had nothing to do with the price drop and explained the situation by «irresponsible liquidations» on the centralized exchange. According to the project’s co-founder, John Patrick Mullin, the incident was the result of a massive forced closure of positions by a major investor. The team stated that it is investigating the circumstances of the incident and working to mitigate its consequences.

Earlier, the project was criticized for the excessive concentration of tokens in the hands of developers, which could have made it possible to influence the price. Although Mullin has publicly denied these accusations, some market participants have emphasized the discrepancy between the blocked assets ($ 3.25 million) and OM’s market capitalization of $ 1.4 billion.

Additional concerns have been raised by the activity of several large wallets that have transferred millions of dollars in OM tokens to OKX and Binance in recent weeks. One of these wallets received more than $ 36 million from Binance and subsequently transferred 4.3 million OM to OKX, which could have affected market stability.

The crisis is complemented by lawsuits against six members of MANTRA DAO, who were ordered by a Hong Kong court to provide financial statements after being accused of misappropriating the organization’s assets. All of this comes amid recent deals and investments: the project raised $ 11 million in 2024 and signed a $ 1 billion deal with DAMAC Group to tokenize real estate in the UAE.

No Worries strongly advises readers not to invest in dubious crypto projects and little-known digital assets!