The cryptocurrency landscape faces turmoil as the Real World Assets (RWA) based Mantra (OM) coin witnessed an alarming decline, plummeting over 90% within a brief timeframe. The startling drop has ignited a wave of panic among users, with many pointing fingers at Binance for the unforeseen incident. Binance responded by releasing a detailed explanation on social media, shedding light on the circumstances surrounding this dramatic event.
What Caused Mantra Coin’s Instantaneous Collapse?
According to Binance, the catastrophic decline of the OM coin stemmed from a chain reaction of liquidations triggered by leveraged trading, both on and off the exchange. Consequently, the coin’s price dropped sharply from $6.31 to a mere $0.70 in approximately one hour.
In a staggering 24-hour period, liquidations for the OM coin reached over $74.5 million, surpassing those of Ethereum (ETH). Binance assured users that it is vigilantly observing developments related to OM and is prepared to implement measures to ensure user protection.
Are Users Safe from Cryptocurrency Scams?
In addition to the Mantra situation, Binance issued a broader alert regarding the rising threat of scams within the cryptocurrency sector. The exchange highlighted the prevalence of fraudulent schemes, including AI-generated deepfake videos that impersonate notable figures and projects, which often ensnare unsuspecting users.
Prominent figures in the industry, such as Ripple executives and Charles Hoskinson of Cardano, have consistently warned the community about these deceptive tactics. Binance echoed this sentiment, urging cryptocurrency enthusiasts to depend solely on credible sources and to remain cautious of content that promises unrealistic returns.
Another concerning factor surrounding Mantra is that nearly 90% of its total coin supply is in the hands of insiders, raising red flags about potential centralization and market manipulation.
– Mantra coin’s dramatic fall highlights risks in leveraged trading.
– Over $74.5 million in liquidations occurred within 24 hours.
– Binance actively monitors the situation to safeguard users.
– Users are urged to be cautious of prevalent scams in crypto.
The events surrounding the Mantra coin serve as a cautionary tale within the cryptocurrency realm, emphasizing the importance of understanding trading risks and remaining vigilant against scams. Investors must employ due diligence to navigate this unpredictable market effectively.
