OM Token Price Crashed Over 90% Amid Rogue Allegations

OM Token, the native token of the MANTRA DAO, plummeted by over 90% in the late hours of Sunday.

As of Sunday 4:00 WAT, the token was traded for $6.1, then moved slightly down to $5.8 and showed an exit/close price of $5.6 at 6:00 PM WAT.

Suddenly at 7:00 PM WAT, the token plunged to $1.3 in a one-hour candle stick. Then moved to $0.39 and closed at $0.48 at 8:00 PM WAT. The coin later moved upwards to above $1 at 11:00 PM WAT and is currently traded for $0.74.

According to Coinglass, the large drop in price wiped out over $5 billion in market cap, and $75.88 million worth of futures positions were liquidated.

This sudden plunge has sparked a lot of reactions from the token’s holders, crypto analysts and the general crypto community.

Some analysts tagged the project as another rug pull similar to Terra’s LUNA crypto collapse in 2022 which obliterated over $60 billion in the digital assets space. They tagged the $OM event the Terra Luna V.2.

$OM is the new $LUNA of this cycle.

In just 2 hours, Mantra wiped out $6 billion and already down 90%.

It's the biggest rug in crypto since the Terra collapse in 2022.

Here's how it went down and who's responsible for billions in losses 🧵⬇️ pic.twitter.com/nRc27B1WdT

— Chiefy (@0xChiefy) April 14, 2025

Some believed that an internal sell-off triggered the downward trajectory the token witnessed while accusing the MANTRA DAO team of preying on the trust of their gullible investors.

Ok, then it depends on your definition of the word team.

To be more clear, it most certainly was an insider (i.e. significant OM holder/investor)

Someone, somewhere needs to take some sort of responsibility for this sht show right? pic.twitter.com/FKG0MiBstn

— Ed | AirdropGlideApp (@AirdropGlideapp) April 14, 2025

Analysts suggest the team may have used $OM as collateral for risky loans as they hold 90% of the token supply. A sudden change in loan risk parameters on these exchanges likely triggered a margin call, accelerating the crash.

the $OM situation keeps getting more interesting with these OKX loans, especially when you follow the money trail from that $200M collateral. someone's asking the right questions about what was actually borrowed and whether it ties back to the HLP attack.

the blockchain doesn't…

— Alta Enigma (@AltaEnigma) April 13, 2025

Adding to the turmoil, Mantra doubled $OM’s supply in October 2024 and shifted to an uncapped, inflationary model with 8% annual inflation. OKX CEO Star Xu labeled the event a “big scandal” and promised more disclosures soon.

MANTRA Blames Reckless Liquidations by CEXs for Price Crash, Reaffirms Project Strength

In its response to the event, the MANTRA Team, through its X account, stated that a reckless liquidation, which has nothing to do with the project, triggered the price plummet.

In addition, it reiterated the fundamental strong position of the project and assured that more details will be put out as information unfolds.

MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…

— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025

Likewise, John Patrick Mullin, MANTRA and SOMA Finance Co-founder, also commented on the incident after some hours and vented his disappointment.

Sherpas, OMies, and broader crypto community,

First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.

We have determined that…

— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025

John Mentioned that the downward movements were activated by reckless forced closures that were initiated by centralized exchanges (CEX) on $OM account holders without the company’s knowledge.

Additionally, John maintained that this dislocation, which hurts both the investors and the project, was never caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors who were accused of selling tokens.

The co-founder added that CEXs have undeniable roles in providing liquidity to projects like MANTRA.

Nevertheless, some commentators in the community expressed dissatisfaction with the company’s submission and requested more accurate details.

Mantra’s OM Token Soars 200% After Crash, But Analysts Warn of Bull Trap

Mantra’s OM token rebounded sharply by nearly 200% to $1.10 on April 14, recovering from a steep weekend crash that erased over $5 billion in market cap and $75.9 million in futures. However, technical analysts warn the bounce may echo Terra’s LUNA bull trap in May 2022.

$OM’s price plunged below its 50-week EMA support near $3.25 and is now facing resistance at the 200-week EMA around $1.08. The weekly RSI has dropped to 33.31, indicating weakening momentum and a possible setup for further downside.

This pattern mirrors LUNA’s post-crash rally, where a brief bounce failed to breach key EMAs before collapsing further. Despite reassurances from Mantra’s co-founder JP Mullin and efforts to dismiss rug pull allegations, sentiment around $OM remains cautious.

Notably, chart analyst AmiCatCrypto warned that $OM could still plunge 90% in a single day—even after a 100-day rally—reflecting deep concerns about the token’s long-term trajectory.