Mantra (OM) Token Crash Erases Billions in Market Value

The cryptocurrency market is no stranger to volatility, but the recent crash of the Mantra (OM) token stands out as a particularly dramatic event.

The cryptocurrency market is no stranger to volatility, but one recent event has particularly stunned observers. In just two hours, the Mantra (OM) token lost over 90% of its price, erasing billions in market value and leaving investors reeling (Coinmarketcap, 2025). This article delves into the details of the crash, the responses from key figures, potential causes, and the broader implications for the altcoin market.

What Happened to Mantra on April 14th, 2025?

Promising decentralized governance and staking solutions, OM had climbed into the top 100 cryptocurrencies by market cap, boasting a valuation in the billions. Its community was vibrant, its partnerships were growing, and its price had reached an impressive $6.3. However, on April 14, starting at 2:00 am (UTC+8), OM’s price crashed to $0.38 in just two hours.

This astronomical drop of over 90% was nearly complete, with the token later stabilizing around $0.88. However, the damage was done. Eight major crypto exchanges halted trading in OM to prevent further price drops and market instability.

What made this collapse so perplexing was the lack of an obvious catalyst. There were no major hacks, regulatory announcements, or negative project updates. The timing—during low-liquidity overnight hours—only deepened the mystery.

The broader crypto market felt the ripples, with other altcoins experiencing heightened volatility. Still, major players like Bitcoin and Ethereum remained relatively unscathed. By morning, the sell-off had slowed, and some recovery in altcoins was observed.

This event wasn’t just a financial loss—it was a wake-up call about the fragility of altcoin markets and the need for vigilance.

Official Responses from All Parties

In the aftermath, the Mantra team issued a statement attributing the plunge to “reckless liquidations” on crypto exchanges due to leveraged long positions in the 4th round of OM tokens. However, their explanation failed to quell skepticism. No follow-up audits or detailed reports were promised, leaving a cloud of doubt.

The crypto community’s reaction was polarized. Some praised the Mantra team for their positive attitude and vision despite the setback. They also highlighted the strong community support for OM and its potential for recovery.

However, other members of the community expressed frustration with the lack of accountability. They pointed out the deceptive practices used by the team to hype up the project and the lack of due diligence from investors.

Possible Methods Used by the Mantra Team for Large-Scale Selling

The Mantra (OM) team’s approach to orchestrating large-scale selling appears to rely on a sophisticated blend of psychological manipulation, tokenomics control, and strategic timing, as implied by the translated text.

1. Crafting a Compelling Narrative to Attract Investment

The Mantra team likely began by constructing a glamorous story to lure investors, presenting OM as a revolutionary project backed by prestigious partnerships and regulatory legitimacy. By claiming ties to a UAE real estate giant and aligning with Islamic finance laws, they dressed up an otherwise speculative token in a veneer of credibility. This narrative acted like a high-end brand label, drawing in both retail investors and larger players eager to capitalize on tokenized real estate in Dubai. However, the disconnect between the project’s modest on-chain activity (millions in TVL) and its inflated valuation (billions) suggests this was a deliberate overpromise—a tactic to create hype and inflate perceived value before any selling began.

2. Controlling Supply and Demand Through Tokenomics

To maintain price control and set the stage for profitable exits, the team may have designed OM’s tokenomics to limit circulating supply while creating an illusion of scarcity. Techniques like high-yield staking rewards encouraged investors to lock up their tokens, reducing sell pressure and keeping prices elevated. Simultaneously, token-burning mechanisms with each transaction shrank the available supply, fostering a perception of increasing value. By allegedly using fake accounts to simulate trading activity, the team could have fabricated liquidity and demand, propping up prices artificially. This tight grip on 90% of the token supply allowed them to manipulate price movements, creating dramatic rallies (like the reported 440x surge) to entice more buyers before a planned sell-off.

3. Building a Loyal Community to Delay Selling Pressure

The Mantra team seemingly leveraged community dynamics to sustain momentum and delay retail selling, which could disrupt their exit strategy. Through emotionally charged rhetoric—phrases like “vision” and “shakeout”—they fostered a cult-like loyalty, discouraging doubt and framing price dips as opportunities. Technical indicators were manipulated to project unstoppable growth, while tying price pumps to broader market narratives (e.g., Bitcoin ETF inflows) kept investors hooked. This environment turned skeptics into outcasts and reinforced a gambler’s mindset among holders, ensuring they clung to tokens even as warning signs mounted, giving the team ample time to prepare their exit.