MANTRA Collapse : Hack or Rug Pull ?
On April 13, 2025, MANTRA (OM) plummeted from $6.34 to $0.46 in 24 hours, a 90% drop that saw its market capitalization plunge from $6 billion to $400 million, according to CoinGecko.
Posts on X are pointing to massive token transfers to exchanges before the crash, fueling rumours of dumping or a rug pull.
Will Sheehan, community lead, denied these accusations, stating that the team is working to clarify the situation without providing immediate details.
Backed by a $108 million fund and a VASP license in Dubai, the RWA project seemed promising. However, the severity of the crash and initial lack of transparency triggered panic, with explosive trading volumes.
Following today’s liquidations, MANTRA addressed the situation on X, reassuring the community that the project’s fundamentals remain strong and clarifying that the team was not behind the activity.
Mantra : The New LUNA ?
The MANTRA collapse echoes Terra’s (LUNA) crash in 2022, where 99% of the value vanished within days. At that time, the crash was caused by the failure of the algorithmic stablecoin UST. MANTRA, on the other hand, does not rely on such a mechanism. Yet, the dynamics are familiar : sudden panic, cascade selling, domino effect.
According to The Block, the crash originated on Uniswap, following a series of massive swaps. These sales drained liquidity pools, causing an immediate collapse in the OM/USDC pair price.
The high slippage quickly affected prices on CEX (like Binance), where leveraged positions began chain liquidations. The result: a downward spiral fuelled by bots and a market sentiment shift.
On-chain data shows abnormal activity hours before the impact. Token transfers of OM to several exchanges were detected, strengthening suspicions of coordinated dumping.
The team, on the other hand, denied rug pull accusations and stated investigations are ongoing, without revealing details at this time.
What Lies Ahead for Mantra (OM) ?
A technical rebound is not out of the question, driven by volatility and short-term speculators. However, the core issue remains unresolved: without clear communication, independent audits, or tangible evidence on the crash’s origin, OM remains in a state of maximum uncertainty.
Despite promising fundamentals (RWA, partnerships), dumping allegations weigh heavily. Transparent communication is crucial to restoring trust.
Keep a close eye : on-chain movements and early stabilisation signals, the only tangible indicators to anticipate what’s next.
