Recent tumult in the cryptocurrency market has taken a dramatic turn with the token Mantra (OM) experiencing a staggering drop of over 90% in value. This unforeseen decline saw OM’s price drop from approximately $6 to as low as $0.43, while its trading volume surged from under $100 million to an incredible $2 billion. This event has raised concerns reminiscent of the previous Terra-LUNA collapse, unsettling many in the crypto community.
What Triggered the Sudden Decline?
The downfall of OM coin began when a wallet linked to the development team moved 3.9 million OM tokens to the OKX exchange, reigniting discussions that insiders possess 90% of the overall supply. This move sparked panic among investors, causing a rapid decrease in price, which ultimately wiped out nearly $6 billion in market capitalization.
Are Manipulation Claims Valid?
The fallout from this situation intensified when the platform blacklisted more than 50 wallets it labeled as “bots,” which further eroded trust among users. Reports indicate that some insiders may have sold coins through over-the-counter transactions at steep discounts, leading to a series of stop-loss orders and subsequent liquidations that hastened the crash.
Since the third quarter of 2023, OM coin has reportedly increased 200-fold, with many questioning whether this rise is attributable to genuine demand or manipulative market tactics. Allegations suggest that major changes to the tokenomics, accumulation of 90% of the supply by insiders, and delayed community AirDrops have been used to artificially inflate prices.
The recent weekend witnessed the sale of 4 million OM coins in a market with low liquidity, further driving prices down and leading to losses for OTC buyers. This selling spree coincided with significant transfers from the second-largest OM wallet to various exchanges.
Collectively, these events point to alarming patterns that suggest a deliberate ploy to mislead investors, akin to past incidents of financial misconduct like the collapses of Terra and FTX. Given the severity of these allegations, it seems plausible that the founders of Mantra might soon face legal scrutiny.
- OM coin dropped over 90% in value.
- Trading volume surged dramatically during the collapse.
- Allegations of insider manipulation are surfacing.
- Investor confidence has significantly diminished.
- Legal ramifications may follow for Mantra’s founders.
The fallout from this incident raises critical questions about transparency and accountability within the cryptocurrency market, leaving investors to reconsider their trust in emerging tokens like Mantra.
