In a stunning turn of events, Mantra OM token experienced a significant 90% price drop overnight, resulting in a $6 billion reduction in its market capitalization. This dramatic decline has sent shockwaves through the cryptocurrency community, prompting discussions about the underlying causes and broader market implications.
John Patrick Mullin, co-founder and CEO of MANTRA, addressed the sudden crash, attributing it to “reckless forced closures” on centralized exchanges (CEXs). He noted that the timing and severity of the drop indicated abrupt position liquidations without adequate warning. Mullin expressed concerns over the discretionary powers exercised by these exchanges, suggesting that unchecked actions could lead to significant market disruptions.
Allegations of Insider Sell-Offs
Amid the turmoil, allegations surfaced accusing MANTRA’s team and investors of orchestrating insider sell-offs to manipulate the market. However, Mullin refuted these claims, stating that neither the team nor its investors were involved in the price decline. He emphasized that all team and investor tokens remained locked by publicly disclosed vesting schedules.
Impact on the Cryptocurrency Market
The OM token’s precipitous fall has had a ripple effect across the crypto market. Investors are reevaluating their portfolios, seeking more stable investment opportunities. This incident has sparked discussions about the need for greater transparency and regulation within the cryptocurrency exchange ecosystem to prevent similar occurrences in the future.
MANTRA’s Position: Emphasizing Fundamental Strength
Despite the market upheaval, MANTRA maintains that its fundamentals remain robust. The project points to its past collaborations with industry giants like Google Cloud and Dubai’s DAMAC Group as evidence of its legitimacy and potential. MANTRA’s team is committed to addressing the challenges posed by recent events and is actively engaging with the community to restore confidence.
As the situation unfolds, stakeholders and investors are closely monitoring MANTRA’s next steps and the broader implications for the cryptocurrency market. The incident serves as a stark reminder of the volatility inherent in crypto investments and the critical importance of due diligence and caution.
Mantra OM Token Crashes – What’s Ahead?
It’s still unclear what exactly caused the sharp crash, which left many traders and investors facing heavy losses during the ongoing trade war. The Mantra team has promised to investigate and will soon share more on what happened. So far, several possible reasons are being considered, including structural weaknesses, the team’s alleged control of 90% of the supply, large token transfers to exchanges, OTC deals, and sudden forced liquidations.
Mantra’s OM token appears heavily oversold on the daily chart, based on the RSI, showing that bears are in control as buying pressure fades. The MACD confirms the downtrend, currently sitting at -0.3007.
