What’s more, the crypto market is notoriously volatile, making any value assessment even more difficult. Even veteran investors were taken by surprise at the recent spectacular crash of the MANTRA (OM) token. Then, just like that, the token crashed—by 90%. Many are now asking what caused this unprecedented disaster and if there is any chance to recover. Token ATH! is here to break down the situation, analyzing the potential causes, the team's response, and the overall outlook for OM.
What Led to the Decline of MANTRA's OM Token?
Yet, the OM token took a nosedive after an abrupt, disastrous exit. To be fair, several factors teamed up to produce a perfect storm, erasing nearly 30% of its value. Having a grasp on these influencing factors is key to helping investors safely maneuver through the volatile crypto market.
Overview of the OM Token Crash
The main catalyst seems to be a large forced liquidation on a centralized exchange. According to MANTRA co-founder John Patrick Mullin, a large OM investor initiated cascading sell orders, overwhelming the order books and accelerating the price decline. The negative sentiment was further exacerbated when on-chain data showed a deposit of 3.9 million OM tokens to OKX, setting off alarm bells over a potential sell-off. This FTX timeline indicates that a true “stop-loss” measure came with no warning, deepening the market hysteria and leading to a clumsy and painful exit of many forms.
In the days immediately preceding the crash, hundreds of millions of OM tokens flooded into centralized exchanges like OKX and Binance. This surge of activity accidentally fueled concerns about market stability even more. This unusual activity raised great pause and concern, with the allusion of internal conflict and highly likely market manipulation. Overarching issues with OM’s tokenomics were magnified. The project’s fully diluted valuation of almost $9.5 billion was a striking contrast to its TVL, which was a paltry $13 million at the time. Such a disparity not only raised eyebrows and red flags about the true value and sustainability of the token itself. The charts suddenly repriced the project due to a major change in the project’s value proposition. It had fallen from $6.09 billion down to less than $699 million, $5.39 billion in lost value.
Team's Response to Allegations
Once the crash occurred, the MANTRA team got to work. They are stringing dudes along to take care of their exposure and make investors feel safe. They claimed that only centralized exchanges launched the “irresponsible forced liquidations” on OM account holders. It was this single action which sent the market into the tailspin. Founder JP Mullin emphasized that the team is investigating the circumstances surrounding these liquidations and is committed to finding a resolution.
Making matters more complicated, the team has strongly refuted allegations of team selling, with Mullin declaring, “This wasn’t team selling. To shore up confidence, they declared all team tokens are locked in custody. Read more from our National Director about how to check them out at 1600 Pennsylvania Ave. Mullin has promised concerned members of the community that the team is working hard to discover why so many of these massive forced liquidations are going through. Further details will be made available as these plans firm up.
MANTRA's Stance on Liquidation Claims
The MANTRA team has been very responsive in dealing with the concerns related to these forced liquidations that caused the OM token’s price crash. Their written statements offer a window into their thinking about what happened, what went wrong, and how they are trying to correct the narrative.
Explanation of Forced Liquidation
The OM market maneuvers MANTRA team attributes the OM market swings largely to what they term as “reckless forced closures”. These closures were done by centralized exchanges specifically aimed at OM account holders. In a forced liquidation, an exchange unilaterally closes out a trader’s position — usually because the trader does not have enough margin to absorb new losses. From the perspective of our MANTRA team, these forced liquidations began with insufficient and sudden forewarning. This failure to give notice started the windfall, a tumbling avalanche that dramatically dropped prices, dare I say it, overnight. The team is investigating what is causing these large, forced liquidations. So stay tuned as details emerge, and hear directly from them as news develops.
Rejection of Dumping Accusations
The MANTRA team have vigorously rebutted claims of team selling or internal dumping of tokens. In answer to significant community worries, Founder JP Mullin wrote very clearly, “This wasn’t team selling. The team reassured that all team tokens are under custody. Unlike other assets, they can be publicly verified at a known and fixed address, providing unprecedented transparency and helping guard against allegations of insider trading. This emphatic denial appears to be intended to soothe rattled investor nerves and keep faith in the much-defended overall integrity of this broken project.
Early Warnings from Mind Of Pepe (MIND) AI Agent
Amid the chaos surrounding the OM token crash, the Mind Of Pepe (MIND) AI agent had highlighted concerns about the token's sustainability. MIND to become future AIXBT killer and the main agent on these space. For now, interest in breakout tokens such as AI16Z remains on a rollercoaster with AI agent developers. The hungry team behind Mind Of Pepe continues to fine-tune their AI agent to ensure MIND holders can maximize the benefits.
MIND's Predictions on OM Crypto
Our Mind Of Pepe (MIND) AI agent expressed concerns about the OM token’s long-term potential. It exposed cracks in the armor, vulnerabilities and market imbalances that threatened its very stability. For MIND, the results of their analysis suggest big questions about the token’s proposed valuation. That implies its total value locked (TVL) backs it at a higher market cap. Snapshot from the AI agent’s report showing the concentration of ownership tokens. According to their news reports, the MANTRA team currently holds close to 90% of the supply in circulation. Due to their sheer volume, this concentration set off alarm bells that there may be insider trading or price manipulation at play.
MIND expects the utility for its token to skyrocket. This increased demand will happen when folks on the outside start to realize the trading success of the Mind Of Pepe community. With this team, MIND is shaping up to be the largest AI agent focused play of 2025. Our AI agent’s predictions further emphasize the need for effective due diligence and critical analysis in the evolving cryptocurrency landscape.
Implications of the Scam Allegations
Approximately 90% of the token’s total supply is controlled by the MANTRA team. Given this concentration, there are immediate concerns about potential insider trading and price manipulation. Just after the charts finished saving, the project’s valuation had already dropped from $6.09 billion to just $699 million. Such a sudden drop is unmistakable evidence of a massive drop in value.
The crash of the MANTRA (OM) token serves as a stark reminder of the risks inherent in the cryptocurrency market. While the team is actively investigating the situation and denying allegations of wrongdoing, the event highlights the importance of careful risk management and due diligence for investors. Here are some risk management strategies for investors:
- Diversification: Spreading investments across multiple cryptocurrencies can help mitigate losses if one asset performs poorly.
- Stop-Loss Orders: Setting stop-loss orders can limit potential losses by automatically selling an asset if it reaches a certain price.
- Due Diligence: Thoroughly researching projects, understanding their tokenomics, and assessing their team's credibility can help investors make informed decisions.
Whether OM token has a chance of recovery is up in the air. Looking at past performance, we know some cryptocurrencies made huge recoveries after their largest crashes, while many others disappeared forever. Expert sentiment is mixed on the team’s approach. Some argue that by going to the root of the problems and rebuilding trust a recovery is possible, while others are more pessimistic and point to fundamental problems with tokenomics and ongoing market manipulation.
The near OM token collapse is an important lesson for every cryptocurrency investor. By understanding the potential causes of such events and implementing effective risk management strategies, investors can better protect themselves in the volatile world of digital assets. Token ATH! is going to keep an eye on this developing situation and report back as updates are made available.
