Mantra (OM) Token Crashes 90% as Project Comes Under Increasing Suspicion

The cryptocurrency project Mantra is coming under increasing suspicion after its OM token shed 90% of its value within a single day.

The cryptocurrency project Mantra is coming under increasing suspicion after its OM token shed 90% of its value within a single day.

The value dropped from $6.27 to only $0.72, erasing more than $5 billion in market value. What transpired next only served to worsen the situation.

Based on blockchain data, Mantra DAO—the project’s behind-the-scenes organization—sent $26.95 million of OM tokens to a Binance wallet on Monday, April 14. This is just after the price’s massive dump, which triggered red flags among observers.

Greater Fool Theory: Mantra Token Price Dumps 90% in a Day, Extinguishing Billions in Value

Detractors cite a disturbing fact: the Mantra team owns around 90% of all OM tokens. The high concentration of ownership and timing of the exchange transfers have fueled accusations of potential insider selling.

“With 90% already dumped in $OM, it seems like the $OM team is about to sell more.

2 hours ago, the @MANTRA_Chain DAO staked wallet sent 38M $OM ($26.96M) to #Binance Cold Wallet.https://t.coingecko.com/en/coins/mantra-coin/implied-trx/0x86fa000000000000000000000000000000000000

Mantra CEO Denies Token Dumping Accusations

Mantra chief executive JP Mullin has rebutted such allegations. He said the team and investors didn’t dump their holdings during the crash.

Instead, Mullin attributed the price decline to “forced liquidations” instigated by cryptocurrency exchanges. Such liquidations occur when exchanges sell traders’ holdings automatically after they are unable to cover margin calls.

But his account is not to everyone’s liking. Various independent analysts have monitored suspicious token transfers that point to a different narrative.

On-Chain Detective Work Reveals Suspicious Transfers

Crypto analyst Max Brown found that Mantra transferred nearly 4 million OM tokens to cryptocurrency exchange OKX shortly before prices began to decline.

The problem for investigators is that once tokens are moved to centralized exchanges like Binance or OKX, they become much more challenging to trace. This is essentially a blind spot where the tokens can be disposed of while leaving behind no clear trail on public blockchains.

MANTRA CHAIN $OM CRASHED 90% IN AN HOUR AND $5.5 BILLION GOT WIPED OUT.

HERE’S HOW AND WHY IT COULD HAVE POSSIBLY HAPPENED 🧵

IT ALL STARTED YESTERDAY WHEN A POSSIBLE $OM TEAM WALLET DEPOSITED 3.9 MILLION OM TOKENS ON OKX.

IT WAS WELL KNOWN IN THE CRYPTO SPACE THAT OM TEAM MEMBERS HOLD A HUGE PERCENTAGE OF THE TOTAL SUPPLY.

IT’S NO SECRET THAT THE TEAM USED TO MOVE FUNDS REGULARLY.

HOWEVER, THE TIMING OF THIS TRANSFER IS CRITICAL AS THE PRICE OF OM BEGAN DECREASING SHARPLY RIGHT AFTER.

WE CAN SEE THAT THE FUNDS WERE CREDITED TO THE EXCHANGE AROUND 11:00 AM (GMT+8) TODAY.

THE PRICE OF OM STARTED DECREASING AT 12:00 PM (GMT+8).

HERE WE SEE THE FUNDS ARRIVING AT THE EXCHANGE.

AND HERE WE SEE THE PRICE DECREASE.

THE PRICE DECREASED FROM $6.2 AT 12:00 PM TO $0.7 AT 1:00 PM.

IT CONTINUOUSLY DECREASED TO $0.6 BY 1:45 PM.

WITH 90% ALREADY DUMPed IN $OM, IT SEEMS LIKE THE $OM TEAM IS ABOUT TO SELL MORE.

2 HOURS AGO, THE @MANTRA_Chain DAO STAKED WALLET SENT 38M $OM ($26.96M) TO #Binance COLD WALLET.https://coingecko.com/en/coins/mantra-coin/implied-trx/0x86fa000000000000000000000000000000000000

While analysts cannot prove it for a fact that insiders sold off tokens, the gradient of movements into exchanges just ahead of the price tumble certainly gives room for serious doubt.

Exchanges Provide Varying Account Of The Crash

Major cryptocurrency exchanges launched investigations as to what triggered the spectacular fall of the OM token.

Binance, the largest crypto exchange in terms of trading volume, corroborates Mullin’s account. In early findings, they indicate cross-exchange liquidations most likely caused the crash, which would support the CEO’