The OM token issued by crypto project MANTRA collapsed over 90%, triggering turmoil among investors and sparking unverified allegations of insider selling.
The token fell from $6.3 to as low as $0.37 within hours, wiping out an estimated $5 billion in market capitalisation.
OM had peaked at $9 earlier this year, and as of Monday, had recovered slightly to above $1.
MANTRA, which specialises in real-world asset (RWA) tokenisation, denied any involvement from its team, blaming the plunge on “reckless liquidations” by centralised exchanges.
“This was not our team. We are looking into it and will share more details,” the project’s official X account posted.
Co-founder John Patrick Mullin added in a follow-up statement that the crash was triggered by the sudden closure of positions on an undisclosed exchange during low liquidity hours.
Mullin suggested the actions taken by the exchange “lacked oversight” and harmed both the project and retail investors.
“We’re still investigating, but this is unprecedented,” he said during a live community session on X.
Critics online, including blockchain analyst ZachXBT, expressed scepticism over the explanation, citing the rapidity and magnitude of the price drop. Some accused the project of executing an off-market dump and then deleting its Telegram group.
Investors have called for legal accountability and greater transparency. The crash has drawn comparisons to Terra Luna’s collapse in 2022.
MANTRA is regulated in Dubai under the Virtual Assets Regulatory Authority (VARA) and has previously announced partnerships with Google Cloud and DAMAC Group.
The project said a community discussion will be held in the coming days, though concerns over centralised exchange control and DeFi risk continue to mount.
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