By Nermeen Nabil Khear 
The post Why Did Mantra (OM) Crash? Binance Points to Liquidations and Token Supply Changes appeared first on Coinpedia Fintech News
The market capitulation for the Mantra (OM), a first-level layer 1 project focused on real-world assets (RWA) tokenization, has attracted significant attention. The previously highly decorated project has now been likened to the Tera Luna (UST) crash due to the similarity of the situation.
Moreover, both projects had gained significant trust from both retail and institutional investors to scale to a market cap of over $7.4 billion before dropping to around $782 million on Monday, April 14, during the early European trading session.
Binance Take on Mantra Crash
With more than $71 million liquidated from the leveraged OM markets in the past 24 hours, mostly from Bybit, Binance stepped in to clear the air. Binance announced that cross-exchange liquidation was a major contributor to the OM price crash today.
According to Binance, the significant change in OM tokenomics is also a major contributor to today’s capitulation. Moreover, the MANTRA team increased the circulating supply of OM from 888,888,888 to 1,777,777,777.
Additionally, the MANTRA team uncapped the supply of OM and introduced an annual inflation of around 3 percent to enhance staking rewards.
“Since October of last year, Binance has implemented various risk control measures including reducing the leverage levels, with regard to the $OM token. Since January this year, Binance has also issued a pop-up warning for $OM on its spot trading page to inform users that the token has undergone significant changes to its tokenomics increasing its supply,” Binance noted.
What Next?
Following the selloff of more than 43.6 million OM coins, worth over $227 million earlier today, attention has shifted to the team allocation. Although the Mantra core developers have attempted to reassure investors of a stable project, a buyback from the secondary market is the only option to regain user trust.
Moreover, the RWA space is fast growing and competition is stiff for investors to be trapped in a poorly managed project amid the anticipated altseason.
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The post Why Did Mantra (OM) Crash? Binance Points to Liquidations and Token Supply Changes appeared first on Coinpedia Fintech News
The market capitulation for the Mantra (OM), a first-level layer 1 project focused on real-world assets (RWA) tokenization, has attracted significant attention. The previously highly decorated project has now been likened to the Tera Luna (UST) crash due to the similarity of the situation. Moreover, both projects had gained significant trust from both retail and …
This articles is written by : Nermeen Nabil Khear Abdelmalak
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