Mantra Token’s Sudden Drop Sparks Panic
The post Mantra Token’s Sudden Drop Sparks Panic appeared on BitcoinEthereumNews.com.
The cryptocurrency market shows signs of recovery, yet the dramatic drop of the Mantra (OM) token has left many concerned. In just a few days, the value of OM plummeted nearly 90%, resulting in significant losses for its holders. Estimates suggest that this downturn has led to a staggering $400 million in losses, with the overall market value declining by about $6 billion. This sudden crash occurred while investors and analysts were closely monitoring on-chain data and trading activities. The incident bears a resemblance to the earlier LUNA crisis, potentially causing ripples of uncertainty in market confidence. Did Recent Wallet Activity Spark the Drop?Is Investor Behavior to Blame for the Decline? Did Recent Wallet Activity Spark the Drop? An investigation by Spotonchain revealed that 19 new wallets emerged just three days prior to the crash, holding 14.27 million OM valued at $91 million. This surge in wallet creation likely amplified price volatility, setting the stage for the subsequent plunge. Many of these tokens were acquired through major exchanges like Binance before the crash transpired. Is Investor Behavior to Blame for the Decline? On-chain analysis from Lookonchain showed that around 227 million OM tokens, representing 4.5% of the circulating supply, are concentrated in the hands of just 17 investors. This level of concentrated selling pressure is believed to have critically influenced OM’s sharp price drop. Market expert StarPlatinum pointed out that such investor movements are often driven by both technical signals and psychological responses. A wave of rapid selling can trigger panic among investors, leading to further market instability. In a statement, Patrick Mullin, co-founder of Mantra, clarified that the downturn was not initiated by the company or its advisors. He emphasized that OM tokens are locked and managed according to fixed maturity schedules. He confirmed that the fundamental aspects of…
Filed under: News - @ April 14, 2025 8:22 am