TL;DR
- Mantra’s OM token lost over 90% of its value within an hour, wiping out $5.5 billion in market capitalization after a suspicious transfer to OKX.
- Coordinated movements from at least 17 wallets were detected before the crash, alongside recent changes in the token’s economic model.
- Although OM rebounded 200% after the drop, experts warned it was a technical bounce with no solid foundation; OKX tightened controls and issued a risk warning.
Mantra’s OM token experienced one of the sharpest crashes of the year in the crypto market. In just one hour, it lost over 90% of its value, eliminating nearly $5.5 billion in capitalization.
The collapse began after a wallet, allegedly linked to the Mantra team, transferred 3.9 million tokens to the OKX platform. This immediately raised suspicions, as the team controls around 90% of the total token supply.
What Happened with Mantra (OM)?
The situation worsened when users discovered that at least 17 wallets, including two associated with Laser Digital, sent large amounts of OM to exchanges shortly before the crash. The high concentration of tokens held by the team and the lack of transparency regarding internal economic changes triggered widespread concern. OKX and Binance stated that automatic liquidations and modifications in token distribution were the main causes of the price drop.
Suspicious Movements and Changes in Tokenomics
Market behavior had shown warning signs prior to the incident. Since March, coordinated activity between several addresses had been observed. Meanwhile, OKX confirmed that major changes to OM’s tokenomics model had been introduced since October 2024. These alterations, combined with unusual transaction volumes, created a fragile and volatile environment.
After the collapse, the token rebounded 200% and reached a price of $1.10, though experts warned it was a technical recovery lacking solid fundamentals. They compared this bounce to what happened with LUNA in 2022, another project that briefly recovered before losing all value. According to data from CoinMarketCap, Mantra (OM) has fallen 90% in the past day, dropping from over $6 to just $0.586 per unit.
OKX responded by tightening its risk controls and adding a volatility warning to the token’s page. It also stated that it will continue monitoring the activity of related addresses and update its measures as events unfold. The platform advised users to operate with caution due to potential unexpected changes in supply. Although the Mantra team denied moving tokens during the crisis, user distrust remains
