What happened to the MANTRA OM token around April 13, 2025?

The MANTRA OM Token Crash: A Catastrophic Collapse Shakes the Crypto Market

On April 13, 2025, the cryptocurrency world witnessed one of its most dramatic collapses since the Terra LUNA crash of 2022. The MANTRA OM token, once a promising asset, plummeted by over 90% in under an hour, erasing more than $5.5 billion in market capitalization. The sudden crash left investors reeling, sparked allegations of insider activity, and raised serious questions about transparency and market manipulation.

### The Context: A Token Mired in Controversy

MANTRA OM had long been a subject of skepticism due to its opaque operations. Over the past year, concerns mounted as the project faced accusations of price manipulation, abrupt tokenomics changes, and repeated delays in delivering a promised community airdrop. These issues eroded trust, setting the stage for the catastrophic events of April 13.

### The Crash: A 90% Plunge in Minutes

The token’s value nosedived from a high of $6.33 to below $0.50 in less than an hour. The sheer speed and scale of the collapse shocked investors and analysts alike. Unlike gradual market downturns, this was a near-instantaneous wipeout, reminiscent of past crypto disasters like LUNA and FTX.

### The Trigger: A Suspicious Deposit

The crash appears to have been triggered by a massive deposit of 3.9 million OM tokens to the OKX exchange. Blockchain analysts linked this deposit to a wallet allegedly associated with the MANTRA team. Given that the team reportedly controlled close to 90% of OM’s total supply, the move immediately raised red flags. Investors feared an impending sell-off, leading to panic selling that exacerbated the downturn.

### Insider Activity Allegations

The deposit fueled long-standing suspicions of insider manipulation. Critics pointed to the team’s disproportionate control over the token supply, arguing that such concentration of power creates ripe conditions for market abuse. The lack of transparency around the deposit’s purpose only deepened these concerns.

### Community Backlash and Panic

The OM community erupted in outrage as thousands of holders saw their investments evaporate. Social media platforms and crypto forums were flooded with demands for accountability. The project’s official Telegram channel was locked during the chaos, further alienating users and fueling speculation about a cover-up.

### The Team’s Response: Denials and Deflections

MANTRA co-founder John Patrick Mullin denied allegations of a rug pull, insisting the team did not initiate the sell-off. Instead, he blamed the crash on “reckless forced closures” by centralized exchanges, claiming leveraged positions were liquidated without warning. However, skeptics noted that this explanation failed to address the suspicious timing of the OKX deposit or the team’s history of opacity.

### OTC Deals and Hidden Discounts

Further investigations revealed that MANTRA may have engaged in undisclosed over-the-counter (OTC) deals, selling tokens at steep discounts—sometimes 50% below market value. These OTC investors were reportedly left holding bags as the crash unfolded, triggering a cascade of stop-loss orders and liquidations that amplified the downturn.

### Broader Implications

If MANTRA OM fails to recover, the crash could rank among the worst in crypto history. Beyond the financial losses, the incident has reignited debates about regulatory oversight, tokenomics design, and the risks of centralized control in decentralized ecosystems. The broader market is now watching closely to see whether this collapse will prompt stricter scrutiny of similar projects.

### Lessons and Warnings

The MANTRA OM crash serves as a stark reminder of the risks inherent in crypto investments, particularly in projects with poor transparency and concentrated token ownership. Investors are urged to conduct thorough due diligence, demand accountability from teams, and remain cautious of tokens with questionable governance practices.

As the dust settles, the crypto community awaits answers—and justice—for those who lost millions in this devastating event. Whether MANTRA can salvage its reputation or whether OM will join the graveyard of failed tokens remains to be seen. One thing is certain: April 13, 2025, will be remembered as a dark day for crypto.