OM Mantra token brutal crash sends shockwaves through crypto market and investor trust

OM Mantra token brutal crash has stunned the crypto community with a jaw-dropping 90% price drop in just hours.

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The token, once celebrated for its meteoric rise from $0.0158 to over $9 in 2024, crashed to $0.37 on April 13. This historic freefall wiped billions from its market cap and sent shockwaves through traders and blockchain investors. At the time of writing, the token is recovering slightly, trading at around $0.60. But confidence has been severely shaken. Rumors quickly spread that the development team may have sold large portions of their holdings. However, MANTRA’s community lead, Dustin McDaniel, denied any internal involvement. He said the team is investigating and promised to provide updates soon. Currently, MANTRA’s official Telegram group is closed to new members, further adding to user anxiety.

An official statement from the project blames the collapse on massive forced liquidations.

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Co-founder John Mullin echoed that in a live X Space, calling the situation “unprecedented.” He claimed a yet-unnamed exchange forcibly closed numerous positions, which triggered the domino effect. The exact reasons for that liquidation move are still under investigation.

While many expected volatility in crypto, this crash is an extreme example of how quickly leverage can go wrong. Liquidations happen when traders borrow against their holdings and the price drops too fast to cover losses. When this occurs at scale, it can trigger automatic selling across exchanges, amplifying losses.

OM Mantra token brutal crash highlights ecosystem risk

MANTRA has built strong partnerships with Google Cloud and Dubai’s DAMAC Group. It also plays a big role in the emerging real-world asset (RWA) tokenization space. But trust is fragile. If retail investors suspect manipulation or lack of transparency, recovery becomes difficult. This incident shows that even seemingly strong projects aren’t immune to chaotic market mechanics.

The crypto community demands accountability

Investors are now pushing for transparency from both MANTRA and the unnamed exchange. They want to know who was responsible, how the system failed, and how it will be prevented in the future. With so much value erased so quickly, many are reconsidering the risks of speculative investing in DeFi.

Can this damage be repaired? Possibly. But MANTRA must act fast, be transparent, and rebuild trust with its community.
This crash may go down as one of 2024’s harshest reminders that even hot tokens can burn investors fast.

This is an ongoing event, more updates soon.

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