The native cryptocurrency of the OM ecosystem, OM token, experienced a catastrophic plunge. In fact, in only 24 hours, its price fell more than 90%. Mantra’s Jin had negotiated a high-profile, $770 million deal with DAMAC in January 2025. They were about to make the $1 trillion investment conglomerate’s assets, including real estate and data centers, liquid by tokenizing them. The event has undermined investor confidence and led to concerns that the entire tokenized asset market may be in jeopardy.
In February 2025, Mantra received a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). Following this accomplishment, the company is poised to take advantage of the growing market for tokenized assets within the U.A.E. The license authorized Mantra to operate a range of crypto services, including exchanges and broker-dealer services, catering to real estate investors and developers seeking innovative funding and capital solutions. The recent market crash amid the COVID-19 pandemic has put a damper on these aspirations.
Market Freefall and Response
The price of the OM token crashed from over $6.3 to under $0.50. This cataclysmic decline eroded more than 90% of its $6 billion market cap. The Mantra developers claimed the crash was due to careless liquidations. The Mantra team have reassured their community that their tokens are secure and safely held. In stark contrast, their Telegram group is filled with action.
Mantra co-founder JP Mullin explained why the OM token collapsed. We want to keep in touch with you. He then repeatedly committed the team to continuing to focus on remedying the 13 failures that caused the crash. He responded to their critics by doubling down on their promised transparency and stability.
UAE Expansion and Tokenization Demand
Mantra’s initiation into the UAE market was largely as a result of an increasing demand for tokenized products. None is more acute than in the real estate industry. As a result, some real estate investors and developers are opting into the practice of tokenization. They view it as an effective tool to leverage capital and deliver projects faster. Mantra’s platform was designed to make this process happen, providing a robust blockchain-based solution to tokenize any asset.
The VARA license continued to establish Mantra’s footing into the UAE market, allowing the company to cater the complete suite of digital asset services. The company's ability to operate crypto exchanges and offer investment consulting services positioned it as a key player in the region's burgeoning digital asset ecosystem.
Future Outlook
The stark price crash of the OM token highlights the volatility and risks surrounding tokenized assets. Mantra’s team does not deny that they are still subject to crash liquidations. This unfortunate event underscores the critical importance of robust risk management and regulatory oversight in the rapidly evolving digital asset space.
The incident further underscores the need for greater investor education and due diligence when engaging with the cryptocurrency space. As the market continues to mature, transparency and stability will be key factors in generating trust and sustainable growth.
