MANTRA (OM), a project focused on tokenizing real-world assets (RWA) and attracting institutional funds into the blockchain world through a compliant framework, experienced a sudden and massive drop in value after 2 AM today (14th). Within just 2 hours, it plummeted over 90%! With no particularly clear negative news, this has sparked heated discussions in the market.

MANTRA Denies Responsibility for OM Token’s Collapse

Regarding the sudden drop, MANTRA’s official account posted around 5 AM, stating that this was not the team’s doing.

Shortly after, the official blog was updated with more information, suggesting that the fluctuation was due to negligence or possible malicious intent from a centralized exchange:

“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized 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.

That this happened during low-liquidity hours on a Sunday evening UTC (early morning Asia time) points to a degree of negligence at best, or possibly intentional market positioning taken by centralized exchanges.

Centralized exchange partners play an important role in providing liquidity to projects like ours. We work closely with them, 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.

To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact, as shared last week in our latest token report. Our token wallet addresses are online and visible.

MANTRA is a project that has survived and operated throughout multiple market cycles. When others stopped building, we kept going. This is no exception. As our recent suite of announcements indicate - from being the first DeFi protocol licensed by Dubai’s VARA, to integrations and initiatives that will broaden and strengthen our ecosystem, we’re committed to our community and we’re here for the long term.”

OM Investors Devastated by Sudden Liquidations Amid Price Crash

The sudden and dramatic drop almost liquidated all leveraged investors. According to Coinglass data, in the past 24 hours, the total liquidation amount for OM contracts across the network reached $70.04 million, second only to Bitcoin. There are also many users on social media who were long on OM crying out, demanding an explanation from the official team.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.