Historic Collapse in Crypto: 90% Plummet, $5 Billion Vaporized
Another historic drop hit the crypto market. Mantra (OM), among the top 20 projects, plummeted over 90% in just a few hours. The market cap of OM dropped from $6 billion to $650 million.
Crypto investors witnessed a historical plunge last night. Mantra (OM), one of the top 20 crypto assets, saw a drop of over 90% in just a few hours. Trading around $6.30 when the collapse began, OM plummeted to $0.37. Later slightly recovering, OM is currently trading at $0.80. The market cap of the crypto dropped from $6.12 billion to $650 million. Meaning, the value of OM was erased by over $5 billion within a few hours. In 2024, OM had surged over 400%, becoming one of the biggest winners in the market.
WHY DID MANTRA (OM) FALL?
The events in Mantra were marked as one of the biggest drops in the crypto market. The source of the issues in OM, one of the largest projects in the Real World Assets (RWA) sector, is still unknown.
Among the circulating claims on social media is that the founding team sold their holdings. It was alleged that the founders conducted sales over the counter (OTC) markets and abandoned the project, including the Telegram group. It was also claimed that a wallet holding a large amount of OM tokens might have been subjected to a cyberattack.
BLAMING CRYPTO EXCHANGES FROM MANTRA
JP Mullin, co-founder of Mantra, revealed that the project’s Telegram group is still active, and the team has not sold any tokens. Mullin stated in a post, “We are here, and we are not going anywhere.” Blaming exchanges for the events in Mantra, Mullin suggested that the crash was triggered by reckless liquidations and claimed that exchanges closed OM positions. A response to these allegations was quickly provided by the OKX exchange. The founder of OKX, Star Xu, refuted the accusations by stating that exchange data is public.
WHAT IS MANTRA (OM)?
Mantra is a Layer-1 blockchain project operating in the decentralized finance (DeFi) space, focusing on the tokenization of real-world assets (RWA). Through the OM token, physical assets such as real estate, artworks, and commodities can be transformed into digital tokens for trading.
Additionally, OM enables lending, borrowing, and other DeFi features.
