The cryptocurrency venture Mantra is coming beneath growing 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 on blockchain information, Mantra DAO—the venture’s behind-the-scenes group—despatched $26.95 million of OM tokens to a Binance pockets on Monday, April 14. This is simply after the value’s large dump, which triggered pink flags amongst observers.
Detractors cite a disturbing truth: the Mantra workforce owns round 90% of all OM tokens. The excessive focus of possession and timing of the change transfers have fueled accusations of potential insider selling.
With 90% already dumped in $OM, it looks like the $OM workforce is about to promote extra.
2 hours in the past, the @MANTRA_Chain DAO staked pockets despatched 38M $OM ($26.96M) to #Binance Cold Wallet.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 workforce and buyers didn’t dump their holdings through the crash.
Instead, Mullin attributed the value decline to “forced liquidations” instigated by cryptocurrency exchanges. Such liquidations happen when exchanges promote merchants’ holdings routinely after they’re unable to cowl margin calls.
But his account is to not everybody’s liking. Various unbiased analysts have monitored suspicious token transfers that time to a special narrative.
OM value has sustained a steep drop within the final week. Source: CoinMarketCap
On-Chain Detective Work Reveals Suspicious Transfers
Crypto analyst Max Brown discovered that Mantra transferred almost 4 million OM tokens to cryptocurrency change OKX shortly earlier than costs started to say no.
The downside for investigators is that after tokens are moved to centralized exchanges like Binance or OKX, they develop into way more difficult to hint. This is basically a blind spot the place the tokens might 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
While analysts can not show it for a undeniable fact that insiders offered off tokens, the gradient of actions into exchanges simply forward of the value tumble actually provides room for severe doubt.
Exchanges Provide Varying Account Of The Crash
Major cryptocurrency exchanges launched investigations as to what triggered the spectacular fall of the OM token.
Binance, the biggest crypto change by way of buying and selling quantity, corroborates Mullin’s account. In early findings, they point out cross-exchange liquidations more than likely brought about the crash, which might help the CEO’s clarification.
OKX paints a special image. The change cited “major changes” in OM’s tokenomics as a attainable trigger. They additionally 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 available in the market have left buyers unsure about what truly transpired. With $5 billion of market worth misplaced and no certainty, confidence within the venture has been severely undermined.
Featured picture from Blueberry Markets, chart from TradingView
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