The OM token, the native cryptocurrency of the Mantra blockchain, registered a sudden and drastic drop over the weekend. The token fell by 90 percent in value, from $6 (roughly Rs. 515) to $0.70 (roughly Rs. 60.5), raising alarms across the crypto community. Speculations suggesting a potential rug pull flooded social media soon after the value of the OM token started to decline. Suspicions around a potential hack also surfaced on social media, intensifying market fear. However, the Mantra leadership team were quick to address the situation and dismiss rug pull rumours.
The broader crypto market lost momentum last week following US President Donald Trump’s announcement of new tariff rules targeting China, India, Europe, and other regions. Amid the market contraction, the decline of OM token prices reportedly eliminated over $5 billion (roughly Rs. 43,048 crore) from its overall market cap within hours.
JP Mullin, the co-founder of Mantra addressed the situation through X in an attempt to tame the spiralling frenzy.
“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralised exchanges on OM account holders. The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice. This happened during low-liquidity hours on a Sunday evening UTC,” Mullin said.
A Breakdown of What Happened
The Mantra chain was founded in 2020 as a DeFi project built atop the Ethereum mother chain. In October 2024, Mantra transitioned into an independent Layer-1 blockchain, supported by the Cosmos SDK. The blockchain network reportedly lays special focus on real world assets (RWAs). The platform has formed several Web3 partnerships over the past year, including collaborations with Google Cloud and UAE real estate giant Damac Group.
Mantra’s Om token plunge over the weekend is being reported as the sharpest single-day crash for any crypto token so far this year. The drop amplified market anxiety at a time when centralised exchanges are already grappling with scams and hack attacks.
In his explanation, Mullin pointed to intentional market positioning by centralised exchanges as a possible cause of OM’s price decline.
“Centralised exchange partners play an important role in providing liquidity to projects like ours. However, they continue to exercise enormously high levels of discretion. When discretionary powers are exercised without due internal and external oversight, dislocations like what recently happened can and will occur, hurting both projects and investors alike,” he noted.
The leadership at Mantra also ensured community members that the tokenomics of the OM token remains intact and claimed that their team did not cause these “reckless liquidations”.
