The post Mantra (OM) Token Crashes Over 90%: What’s the Reason? appeared on BitcoinEthereumNews.com.

Altcoins ​On April 14, 2025, the cryptocurrency Mantra (OM) experienced a dramatic collapse, plummeting around 90% in value within a single hour. The token’s price fell from $6.2 to below $0.45, erasing billions in market capitalization and sparking widespread concern in the crypto community.​ Key Factors Behind the Crash Massive Token Deposits and Potential OTC Deals: Reports indicate that wallets, possibly linked to the Mantra team, deposited approximately millions of OM tokens on the OKX exchange. Given that the team controlled nearly 90% of the total token supply, this move raised suspicions. Speculation arose that these tokens were part of over-the-counter (OTC) deals made at steep discounts, possibly up to 50%, leading to significant selling pressure when the price dropped. ​ Forced Liquidations Across Exchanges: Binance attributed the crash to cross-exchange liquidations, where leveraged positions were forcibly closed due to rapid price declines. This cascade effect intensified the downward spiral, exacerbating the token’s loss in value. ​ Allegations of Insider Selling and Lack of Transparency: Analysts and community members have raised concerns about potential insider selling. Some allege that the Mantra team offloaded their holdings, contributing to the crash. Additionally, the sudden deletion of Mantra’s official Telegram group has fueled speculation about a possible “rug pull.” ​ Market Reaction and Future Outlook The abrupt decline in OM’s price has drawn parallels to the infamous LUNA crash of 2022. While Mantra’s co-founder, JP Mullin, stated that the crash resulted from forced liquidations and not team actions, the lack of clear communication has left investors wary. As the situation unfolds, the crypto community awaits further clarification and transparency from the Mantra team. ​ This incident underscores the risks associated with centralized token control and the importance of transparency in the cryptocurrency space.​ Author Kosta Gushterov Reporter at Coindoo Kosta has been a…

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Filed under: News - @ April 14, 2025 10:24 am