The cryptocurrency challenge Mantra is coming beneath rising suspicion after its OM token shed 90% of its worth inside a single day. The value dropped from $6.27 to solely $0.72, erasing greater than $5 billion in market worth. What transpired subsequent solely served to worsen the state of affairs.
Based mostly on blockchain knowledge, Mantra DAO—the challenge’s behind-the-scenes group—despatched $26.95 million of OM tokens to a Binance pockets on Monday, April 14. That is simply after the value’s huge dump, which triggered pink flags amongst observers.
Detractors cite a disturbing reality: the Mantra staff owns round 90% of all OM tokens. The excessive focus of possession and timing of the trade transfers have fueled accusations of potential insider selling.
With 90% already dumped in $OM, it looks as if the $OM staff is about to promote extra.
2 hours in the past, the @MANTRA_Chain DAO staked pockets despatched 38M $OM ($26.96M) to #Binance Chilly Pockets.https://t.co/nSttgmuqzg pic.twitter.com/Vsc2q346fC
— Onchain Lens (@OnchainLens) April 14, 2025
Mantra CEO Denies Token Dumping Accusations
Mantra chief govt JP Mullin has rebutted such allegations. He mentioned the staff and traders didn’t dump their holdings through the crash.
As a substitute, Mullin attributed the value decline to “pressured liquidations” instigated by cryptocurrency exchanges. Such liquidations happen when exchanges promote merchants’ holdings robotically after they’re unable to cowl margin calls.
However his account is to not everybody’s liking. Varied unbiased analysts have monitored suspicious token transfers that time to a special narrative.
OM value has sustained a steep drop within the final week. Supply: CoinMarketCap
On-Chain Detective Work Reveals Suspicious Transfers
Crypto analyst Max Brown discovered that Mantra transferred almost 4 million OM tokens to cryptocurrency trade OKX shortly earlier than costs started to say no.
The issue for investigators is that after tokens are moved to centralized exchanges like Binance or OKX, they change into far more difficult to hint. That is basically a blind spot the place the tokens could be disposed of whereas abandoning no clear path on public blockchains.
MANTRA CHAIN $OM CRASHED 90% IN AN HOUR AND $5.5 BILLION GOT WIPED OUT.
HERE’S HOW AND WHY IT COULD HAVE POSSIBLY HAPPENED 🧵
IT ALL STARTED YESTERDAY WHEN A POSSIBLE $OM TEAM WALLET DEPOSITED 3.9 MILLION OM TOKENS ON OKX.
IT WAS WELL KNOWN IN THE CRYPTO SPACE THAT OM TEAM… pic.twitter.com/9ZQNw4Yrla
— Max Brown (@MaxBrownBTC) April 13, 2025
Whereas analysts can’t show it for a undeniable fact that insiders offered off tokens, the gradient of actions into exchanges simply forward of the value tumble definitely provides room for critical doubt.
Exchanges Present Various Account Of The Crash
Main cryptocurrency exchanges launched investigations as to what triggered the spectacular fall of the OM token.
Binance, the most important crypto trade by way of buying and selling quantity, corroborates Mullin’s account. In early findings, they point out cross-exchange liquidations almost certainly precipitated the crash, which might help the CEO’s clarification.
OKX paints a special image. The trade cited “main adjustments” in OM’s tokenomics as a doable trigger. Additionally they famous that a number of blockchain addresses had despatched massive portions of tokens to exchanges through the time of the crash.
The contradicting accounts by varied gamers out there have left traders unsure about what truly transpired. With $5 billion of market worth misplaced and no certainty, confidence within the challenge has been severely undermined.
Featured picture from Blueberry Markets, chart from TradingView
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