The Mantra Network rugpull: How the Web3 ecosystem lost nearly $6 billion

Since the beginning of 2025, the Web3 ecosystem has reportedly lost nearly $6 billion to rugpulls, with 92% linked to the Mantra case.

The Web3 ecosystem has reportedly lost nearly $6 billion to rugpulls since the beginning of 2025, with 92% linked to the Mantra case. This marks a 6,499% increase in losses compared to early 2024.

Earlier this month, the crypto industry was stunned by mounting allegations that the Mantra Network may have orchestrated a rugpull, raising urgent questions about the due diligence users apply when engaging with dApps and tokens.

The Mantra incident rocked the crypto market

Mantra Network recently came under scrutiny following accusations of a rugpull after the network’s MANTRA (OM) token saw its value fall by over 90% in less than an hour on April 13.

The dump saw more than $5.5 billion in market capitalization wiped out and took OM from a high of $6.33 to below $0.50, leading many to draw comparisons to the infamous Terra LUNA case.

According to multiple reports, the trigger is most probably a large token deposit linked to a wallet allegedly associated with the MANTRA team. And since the team reportedly controls close to 90% of the token’s total supply, the move raised immediate red flags as people grew concerned that an insider was about to dump.

The OM community has long been apprehensive about transparency and has, over the past year, claimed that the team manipulated the token’s price through market makers, changed tokenomics, and repeatedly delayed a community airdrop.

There are also reports that MANTRA may have engaged in undisclosed over-the-counter (OTC) deals, which saw the team selling tokens at steep discounts. The rapid decline in OM’s price pushed these OTC investors into losses, sparking a mass exodus as panic selling became the order of the day.

The panic created a ripple effect that triggered stop-loss orders and forced liquidations on leveraged positions, compounding the collapse.

There were signs for anyone with access to on-chain data

Investigations and community discussions are ongoing, but the on-chain activity is filled with signs that could have raised early concerns to any knowledgeable investor who cared to look.

According to data from DappRadar, the platform’s all-time high in Unique Active Wallets (UAW) was 64, and this was recorded in December 2024. Besides that brief spike, daily wallet interactions consistently ranged between 1 and 11, with multiple days showing no activity at all.

The lack of consistent user engagement signals low traction, a potential red flag for any project claiming growth or adoption.

A similar pattern can be noticed in the transaction data. While some days recorded as many as 66 transactions, activity regularly dropped back to zero.

Such erratic fluctuations point toward volatility in user behavior and possibly inorganic engagement — common signs in dApps that may have been doctored to appear more active than they are.

While none of these metrics can confirm shady business on their own, the combination of data points like low consistent user activity, unstable transaction trends, and limited transparency around token distribution can create a pattern worth taking a second look at, especially when combined with a narrative that may overpromise on development or utility.