Mantra Token Plummets 90% Amid Allegations of Reckless Liquidations

On April 13, the native token of the RWA project Mantra saw its price collapse by approximately 90% within three hours, prompting speculation of fraudulent activity within the community.

The value of MANTRA (OM) fell from around $6.3 to below $0.5. After a rebound, the token traded near $0.8, with its market capitalization shrinking to $765 million—a reduction of approximately $5.5 billion.

“The team needs to address this issue, or OM could drop to zero. The biggest rug pull since LUNA/FTX?” wrote a user named Gordon.

According to an investor known as Sjuul, Mantra’s developers controlled about 90% of the total OM supply, which, among other reasons, led to trust issues within the community. He stated that the team:

• used a market maker to artificially support the price;
• changed the tokenomics without public disclosure;
• delayed a promised airdrop.

$OM is the $LUNA of this cycle.

$6B+ wiped out within 30 minutes.

But why did it happen?

?: THE $OM CRASH DECODED?

( MUST REPOST AND LIKE ) pic.twitter.com/7Cz8ymsrHH

— Sjuul | AltCryptoGems (@AltCryptoGems) April 13, 2025

The transfer of 3.9 million OM from a wallet allegedly linked to the project to the OKX exchange raised concerns about a potential sell-off.

“Rumors circulated that Mantra made private deals with investors, offering tokens at huge discounts—some at 50% or more,” noted Sjuul.

The drop in OM’s price below the acquisition cost for these buyers triggered market panic and led to the liquidation of leveraged positions.

“It was a complete collapse. More than $5.5 billion vanished in an instant,” emphasized the investor.

On-chain analysts confirmed significant OM transfers to exchanges OKX and Binance in recent days.

A wallet labelled as @LaserDigital_ deposited over $41M worth of $OM into OKX just 2 days ago.$OM price has dumped 90% in the last few hours❗️

This wallet received the majority of its $OM holdings from GSR over a year ago!

Address:
0xB37DBDec19737d52cDC8fD969B92bAA9e044f26A pic.twitter.com/PRoRFGNLRH

— Amir Ormu (@AmirOrmu) April 13, 2025

“We found that the OM market movements were caused by reckless forced liquidations initiated by centralized exchanges on OM holders’ accounts. The timing and depth of the crash suggest that the extremely sudden liquidation of positions was initiated without proper warning or notification,” stated the project’s statement.

Mantra CEO John Patrick Mullin assured:

• there was no hack;
• no active OM sales by the team or major investors occurred;
• insiders, including project participants, did not profit from the price movements.

JP Mullin (CEO of @MANTRA_Chain) remarks at BTCON RWA Summit today on $OM price action overnight

• No exploit or hack
• No active selling from MM or investors
• Large investors using $OM as collateral were liquidated, which caused drastic price action

• Post mortem… https://t.co/2s59WZGn86 pic.twitter.com/eThEH3gIvf

— alphanonce Intern (@alphanonceStaff) April 14, 2025

He confirmed that the price collapse was caused by large-scale liquidations of positions using OM as collateral. Regarding the large token transfers, Mullin noted they were related to bridge interactions through “basket wallets.”

“We are here to stay,” emphasized the project’s co-founder.

Back in March, hackers breached the RWA protocol Zoth, causing a loss of $8.4 million in digital assets.