The $OM token, the core asset of Layer 1 blockchain Mantra, has been decimated by a precipitous 90% price collapse

The $OM token, positioned within the burgeoning real-world asset (RWA) tokenization sector and boasting partnerships with tech and real estate giants

The $OM token, core asset of Layer 1 blockchain Mantra, has suffered a massive 90% price collapse on Sunday, sparking accusations of an insider sell-off that wiped out billions from its market capitalization.

The token, operating within the real-world asset (RWA) tokenization sector and boasting partnerships with tech and real estate giants, plummeted from over $6 to a low of $0.37 in a few hours. It is currently trading around $0.7096.

The rapid decline of the OM token has triggered suspicion among cryptocurrency investors, with many accusing the MANTRA team or closely affiliated entities of orchestrating a "rug pull" or a coordinated dump of their holdings. These accusations were amplified by reports of MANTRA's official Telegram channel being briefly locked down, cutting off a vital communication line for concerned investors. However, founder JP Mullin denies this happened.

On-chain data analysis has further fueled these allegations. Crypto sleuths reported significant movements of OM tokens to exchanges in the days leading up to the crash.

One analysis indicated that $227 million worth, or 4.5% of the circulating supply, was deposited across various trading platforms by 17 wallets, including some linked to a strategic investor, in the week pre-crash. This activity suggests substantial selling pressure was building before the dramatic price implosion.

MANTRA community - we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details about what happened as soon as we can.

Mantra's initial response, posted on their X account, attributed the catastrophic price action to "reckless liquidations" by external actors, vehemently denying any internal involvement.

This explanation has been met with disbelief and anger from the affected investor base. The notion that external liquidations could cause such a swift collapse of a multi-billion dollar market cap token has been widely ridiculed. Prominent on-chain investigators have openly questioned the plausibility of this narrative.

Many investors are demanding a full and transparent investigation, with some already discussing potential legal action.

"We are grateful for the support of the Sherpas, OMies, and broader crypto community," said MANTRA in a subsequent statement. "The team and I want to express our sincere gratitude for the support that has been provided to us over the past several hours. We believe this is a testament to the strong support MANTRA has among its investors and community."

OKX CEO Star Xu described the OM token collapse as a major scandal for the entire crypto industry. Xu emphasized that all on-chain data, including unlocking, deposit, collateral, and liquidation activities, is publicly available for scrutiny across major exchanges. He further stated that OKX would be preparing and releasing all relevant reports related to the OM token incident,