Mantra (OM) Token Fails to Capitalize on Today's Market Rally, Erasing Earlier Gains Due to Continued Negative Sentiment

Weeks after the collapse of the Mantra (OM) token, users are still seeking answers about what happened. On Friday, May 9, OM was down 2.09%

Manrta token failed to capitalize on broader crypto market gains on Friday, erasing earlier gains as technical indicators and investor sentiment remained largely bearish.

Later in the day, Mantra (OM) was down 2.09% to $0.3667. Earlier in the day, the token had climbed as high as $0.3923.

If Mantra can sustain those levels, it would signal a possible shift in momentum. However, for now, OM is trading below both its 10-day and 20-day simple moving averages of $0.40614 and $0.4666, respectively.

Instead of a breakout, OM quickly retraced, continuing the steady decline that has persisted for weeks.

Mantra token lost 95% of its value on April 13. While the team blamed exchanges for liquidity mismanagement, many online investigators have shared a different story.

Several on-chain sleuths, including Choze and Onchain Lens, highlighted large movements from Mantra’s wallets to exchanges. While not definitively proof of insider selling, many in the community believe that’s exactly what occurred.

Further fueling concern are allegations that the Mantra team controls up to 90% of the token’s supply. According to Onchain Lens, this level of control allowed the team to artificially pump OM’s price for months.

In response to the crash and growing scrutiny, CEO John Mullin pledged to burn 150 million staked OM tokens, a portion of the team’s holdings. With a circulating supply of 1.66 billion, the burn would account for just under 10% of the token’s total supply.