The cryptocurrency market has been rocked yet again by the dramatic crash of Mantra’s $OM token, which plummeted over 90% in a single hour on April 14, 2025, wiping out approximately $6 billion in market capitalization.
This unprecedented event has understandably sparked widespread scrutiny, with allegations of liquidity manipulation, centralized exchange (CEX) misconduct, and legitimate questions about Mantra’s transparency.
At present, Mantra’s leadership is attempting to address the crisis, announcing plans for a token buyback and supply burn program, while denying claims of insider wrongdoing.
The $OM token, tied to Mantra’s real-world asset (RWA) tokenization platform, dropped from $6 to $0.40 in a matter of hours, triggered by what the Mantra team described as “reckless liquidations” on centralized exchanges during a period of low liquidity.
A massive deposit of 3.9 million $OM tokens to the OKX exchange, reportedly linked to a team wallet, fueled panic and speculation of a potential rug pull.
Community frustration intensified as Mantra’s Telegram channel was temporarily locked, leaving investors scrambling for answers.
Mantra’s co-founder, JP Mullin, swiftly denied any insider activity, asserting that team tokens remained locked and that the crash was due to external exchange actions. However, there is a lack of transparency and not enough clarity regarding these assertions.
Further complicating the narrative, reports emerged alleging that market makers exploited validation gaps to artificially inflate $OM’s liquidity, creating a false sense of market stability.
These manipulations may have exacerbated the token’s vulnerability to rapid sell-offs.
Coinbase issued a bearish outlook, warning of rougher market conditions ahead, which added to the negative sentiment surrounding $OM and the broader crypto market.
Posts on social media echoed this unease, with users citing Coinbase’s caution and accusing Mantra of faking liquidity to prop up $OM’s value.
Mantra’s leadership has been seemingly proactive in addressing the fallout.
Mullin emphasized that the team’s Telegram remained active and urged the community to avoid spreading misinformation.
He attributed the crash to systemic issues with centralized exchanges, which he claimed forced liquidations that spiraled out of control. But it remains unclear just how this actually occurred, leading many industry observers to doubt these claims.
Meanwhile, Nomura’s crypto arm, Laser Digital, which had previously partnered with Mantra, issued a statement denying any involvement in the crash, distancing itself from the controversy.
In a bid to restore investor confidence, Mantra announced plans for a token buyback and supply burn program.
Mullin stated that details of the initiative would be released soon, signaling an effort to reduce circulating supply and stabilize $OM’s price.
However, skepticism persists, with some social media users questioning whether these measures will be enough to rebuild trust after such a devastating loss.
The $OM token crash underscores broader challenges in the crypto industry, particularly around liquidity management and the risks of centralized digital assets exchanges.