By Nermeen Nabil Khear 
Mantra experienced a devastating 90% decrease within one day of trading, which caused the crypto community to relate it to previous token flops.
Let’s examine what happened, consider what the Mantra team says, and plan the way forward.
The Collapse: From $6.3 to Below $0.50
On April 13, Mantra (OM) went from trading around $6.30 to less than $0.50—wiping out more than $6 billion in market value. That’s a heavy collapse, and naturally, it caused panic.
Mantra’s token $OM just dumped 80% in under an hour.
Rug pull?
pic.twitter.com/d15OnGsnOk
— Gordon (@AltcoinGordon) April 13, 2025
Some traders called it a potential “rug pull.” One investor even tweeted, “Biggest rug since LUNA/FTX?” But as of now, there’s no clear evidence of foul play.
Seems like the Mantra team were holding a large amount of supply and market sold everything.
Team needs to address this or $OM looks like it could head to zero.
Biggest rug pull since LUNA/FTX?? https://t.co/fU0Hk0uOGr pic.twitter.com/xSz5zP1QrH
— Gordon (@AltcoinGordon) April 13, 2025
Mantra’s Response
In the middle of the chaos, John Patrick Mullin, co-founder of Mantra, took to X to calm things down. He denied any internal misbehavior, stating that;
Guys let’s get a couple things straight:
– The TG was not deleted.
– The Team tokens all remain in custody, verifiable at this address – mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam
– We are actively figuring out why these massive forced liquidations occurred and will provide…— JP Mullin (
,
) (@jp_mullin888) April 13, 2025
Mullin blamed the crash on “reckless forced liquidations” by a CEX, which closed out OM holders’ positions without warning—and did it during low-liquidity hours on a Sunday night.
Sherpas, OMies, and broader crypto community,
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…
— JP Mullin (
Whale Movements and Red Flags Before the Crash
Several major token holders (whales) evacuated OM tokens worth hundreds of millions into cryptocurrency exchanges through Lookonchain and Spot On Chain data just before the price collapse. For example:
- A single group transmitted 14 million OM tokens to the OKX exchange platform.
- Since April 7, users have sent over 43.6 million OM tokens (around 4.5% of the total supply) to exchanges.
Just within 3 days before the crash, this group of fresh $OM whales moved 14.27M $OM (~$91M) to #OKX at an average price of $6.375.
Back in late March, they had jointly scooped up 84.15M $OM from #Binance for ~$564.7M (avg. $6.711).
Now, after a brutal ~90% drop, their… https://t.co/H7EASdsZaG pic.twitter.com/VsePiGlStV
— Spot On Chain (@spotonchain) April 14, 2025
Some of those wallets reportedly lost over $400 million—unless they managed to hedge their positions elsewhere. These movements have led many to believe that a coordinated sell-off or setup might have been behind the collapse.
Mantra’s Recent Successes Make This More Surprising
The current situation remains even more surprising since Mantra reached its performance peak several months ago.
- In January 2025, Mantra established a $1 billion strategic partnership with DAMAC to tokenize physical assets like real estate and data centers.
- In February, Mantra secured a Virtual Asset Service Provider (VASP) license from Dubai’s VARA, giving it the legal right to operate in the UAE.
These milestones show that Mantra is a serious platform in the tokenized asset sector, making the token crash even more confusing.
𝗕𝗥𝗘𝗔𝗞𝗜𝗡𝗚: MANTRA and DAMAC Group @DAMACOfficial Revolutionize Tokenized Real-World Assets with US$1 Billion Deal.#MANTRA and #DAMAC Group will collaborate to enable token-based financing for a diverse range of assets, spanning real estate, hospitality, data centers,… pic.twitter.com/AblEjLgoWH
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) January 9, 2025
What’s Next?
The team maintains its commitment to the vision, although, with the 90% market drop, investors cannot ignore the situation. Community members look forward to new information, especially on these matters:
- Which exchange caused the forced liquidations?
- Why did the crash happen so suddenly?
- What steps will the team take next?
Cointelegraph tried to get a comment from the Mantra team, but they haven’t responded publicly beyond social media posts.
$OM Collapse—Rugpull or Market Panic? | Mantra Team Responds https://t.co/h1qxp3sFF7
— Cointelegraph (@Cointelegraph) April 14, 2025
Conclusion
The Mantra crash serves as strong evidence that cryptocurrency markets can shift rapidly. Behind the sudden market decline, investors need complete clarity about the cause to understand better how this happened. The actual reason remains unclear, whether it started from exchange management errors, whale activity, or other factors.
Everyone awaits the next step the Mantra team will take. The team’s response will either reestablish market confidence or launch another substantial crypto failure.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post What Happened to Mantra? Token Plunges Over 90% appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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