OM Token Wipeout: MANTRA Points to Centralized Exchange Failures

As OM plunges over 90%, MANTRA blames forced liquidations—denying any internal sell-offs and reaffirming project fundamentals.

In a shocking turn of events on April 13, 2025, the OM token—the native asset of MANTRA Chain—plummeted from approximately $6.30 to under $0.50 within hours, wiping out over $5 billion in market capitalization. The sudden crash sparked panic across the crypto market, with comparisons to past collapses like LUNA and FTX flooding social media. But unlike those infamous failures, MANTRA is adamant that this was no rug pull.

What Happened to OM token?

According to data from the last 24 hours, OM’s price experienced extreme volatility during low-liquidity Sunday evening trading hours (UTC), a time typically associated with less market depth and heightened vulnerability to price manipulation. As the token fell over 90%, many in the community questioned whether internal actors were to blame.

MANTRA responded swiftly, releasing a statement blaming the price collapse on “reckless forced closures initiated by centralized exchanges on OM account holders.” These closures, according to the team, were executed without proper notice or risk management, causing a cascade of liquidations and market sell pressure.

MANTRA’s Official Position

The MANTRA team has strongly refuted any internal involvement in the crash. Their statement emphasized:

The crash was not triggered by team members, core advisors, or investors.
All team and investor tokens remain locked according to the official vesting schedule.
No tokens were sold from MANTRA-controlled wallets.
On-chain wallet activity remains visible and in line with previously published tokenomics.

Furthermore, the team pointed to the suspicious timing of the event—during low-liquidity hours—as a potential sign of manipulation or negligence by centralized exchange operators.

“MANTRA is a project that has survived and operated throughout multiple market cycles. When others stopped building, we kept going.” JP Mullin – Co-Founder of Mantra

What is MANTRA?

For those less familiar, MANTRA Chain is a purpose-built Layer 1 blockchain focused on real-world asset (RWA) tokenization. Designed with regulatory compliance in mind, MANTRA aims to bridge traditional finance and decentralized infrastructure.

Key highlights include:

A Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA)
Launch of a $108,888,888 Ecosystem Fund to grow the RWA ecosystem
A $1 billion partnership with DAMAC Group for RWA tokenization
Recipient of the first-ever VARA DeFi license

Operating as a permissionless chain with strong compliance underpinnings, MANTRA positions itself as a trusted player in the evolving RWA space.

What’s Next?

To address concerns and maintain transparency, MANTRA is hosting a community connect on X (formerly Twitter). Users are encouraged to tune in for further clarification directly from the team.

Additionally, the team has issued a warning to be on the lookout for scam accounts and malicious links. Official updates will only come from MANTRA’s verified X account or Co-Founder JP Mullin’s personal profile.

Final Thoughts

As speculation continues to swirl, MANTRA’s insistence on external culpability highlights a growing tension within crypto: decentralized assets remain at the mercy of centralized infrastructure. Whether this was a case of poor exchange risk management or something more calculated, the event underscores a key challenge for Web3 ecosystems.

For now, all eyes remain on OM’s recovery—and whether MANTRA can build its way out of the rubble.