The sharp drop in the price of Mantra (OM), a leading token backed by real assets, has caused a seismic shift in the crypto market. This 90% crash unveils a tale of price manipulation and investor distrust at play.
The Mantra (OM) token was recently considered one of the strongest in the market. It even ranked at the top among cryptocurrencies backed by real assets (real-world assets or RWA). However, its price has just collapsed by over 90%, dropping from over $6 to just $0.43. A true cataclysm that has sent shockwaves throughout the crypto ecosystem.
This steep decline was triggered by a single transaction. A wallet connected to the Mantra team transferred 3.9 million OM tokens to the OKEx platform. This operation immediately raised serious concerns. Nearly 90% of the total token supply is controlled by insiders. This seriously undermines the stability and value of the project.
A month earlier, Mantra had conducted an airdrop, but had previously blacklisted over 50% of wallets, labeling them as “bots” without any transparency. This decision, along with persistent rumors of discounted token sales in the market, eventually eroded investor confidence.
The collapse of OM’s price actually seems to correspond to a carefully planned scheme by the project team to enrich themselves at the expense of the community. The transfers and token movements observed before the steep fall indicate a calculated maneuver aimed at completely destabilizing the token’s value.
Similar to the collapse of the Terra/LUNA ecosystem, investors were literally “rug pulled,” meaning they were fraudulently stripped of their funds. Institutions and trading firms that had heavily invested in OM through agreements suddenly found themselves in losses.
Facing this debacle, Mantra’s founders and executives now risk facing legal actions, similar to those involved in FTX and Terra scandals. Once trust is lost, the future of these tokens becomes exceedingly bleak.
The collapse of Mantra (OM) is unfortunately not an isolated case in the volatile universe of cryptocurrencies. It adds to the long list of scandals and collapses that have shaken investors’ confidence in recent years.
Faced with these drifts, regulators will likely tighten their surveillance and requirements on crypto projects. Investors, on their part, will need to exercise extra caution and equip themselves with solid technical expertise before stepping into this market. Beyond the enticing promises, the risks of capital loss remain high.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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