OM Token Flash Crash 90%, Mantra’s Instant Demise

Introduction

On April 13, 2025, the crypto world was hit hard: MANTRA (OM) token crashed from $6.3 to $0.37 in just a few hours, a drop of over 90%, with a market value of billions disappearing into thin air.

Investors are shocked, the community is in an uproar, and X platform is filled with anger, suspicion, and despair. This flash crash is like a sudden storm, brutally knocking MANTRA off the throne of RWA shining star. Is it the exchange’s conspiracy? Team’s betrayal? Or the market’s ruthless judgment? Let’s step into the center of this crypto disaster and search for fragments of truth.

The brilliance and hidden worries of RWA Star

MANTRA was once the darling of the 2024 crypto market. As a Layer 1 blockchain based on Cosmos SDK, it is flagging the tokenization of real-world assets (RWA), promising to bring traditional assets such as real estate and bonds into the DeFi world. Collaborations with Google Cloud, endorsements from Dubai’s DAMAC Group, and even vague rumors with BlackRock have made the OM token a fervent pursuit for investors.

From a low of $0.0158 at the beginning of the year to a peak of $9, the market value of OM once surged to over 8 billion USD. However, behind the prosperity, there are hidden undercurrents: out of 8.88 billion tokens, 90% are held by the team and early investors. Although there is a disclosed lock-up plan, it has been criticized repeatedly due to insufficient transparency. The dissatisfaction of the community is like a timed bomb, quietly waiting to explode.

Countdown to Doomsday: The Fatal Blow of a Flash Crash

On the evening of Sunday, April 13th, the cryptocurrency market was immersed in the laziness of the weekend, but OM plummeted into the abyss without any warning. On-chain data shows that on that evening, OKX and Binance exchanges experienced abnormal trading volumes, with an unknown wallet transferring 3.9 million OM to OKX, followed by a price crash from $6.3 to $0.37 like a snow avalanche, causing a market value evaporation of nearly $10 billion.

Panic swept the market, retail investors watched helplessly as their account balances were wiped out, and X platform was instantly flooded with posts about the ‘OM crash’. The low liquidity period magnified the selling effect, the order book was pierced, and the market was in chaos. Several hours later, the price struggled to recover to around $1.3, but the scars could not be erased.

Who is the mastermind behind the scenes? The truth is elusive.

After the flash crash, the MANTRA team quickly stepped forward to clarify. Co-founder John Patrick Mullin angrily accused centralized exchanges on X of “malicious forced liquidation” that destroyed the market, emphasizing that the team did not sell, and the tokens are still held according to the lock-up plan. However, this explanation failed to quell the community’s anger.

Chain detectives quickly unearthed suspicions: the 3.9 million OM wallet transferred to OKX is closely related to the team, with precise timing that raises doubts. What’s even more unsettling is the unconfirmed rumor circulating on X that the team secretly increased the token supply from 888 million to 1.78 billion, completely bypassing community governance.

The community’s criticism is also directed at MANTRA’s ‘previous record’: the airdrop plan is repeatedly delayed, the voting mechanism is accused of being manipulated, and the token distribution is highly centralized. These issues have long made investors suspicious, and the flash crash is just the fuse.

Some people suspect this is a carefully planned ‘rug pull’, and even call for regulatory intervention; but there are also voices that believe the retreat of the RWA craze and the pressure of overvaluation are the real culprits. The truth is still shrouded in mystery, but one thing is certain: the high concentration and fragile liquidity of OM have paved the way for this disaster.

The roar of the community and the crack of hope

The flash crash has ignited the community’s powder keg. On the X platform, investors’ emotions have shifted from shock to anger. One user wrote, “Invested $20,000, left with $2,000 overnight, MANTRA you owe me an explanation!”

On the other hand, supporters are trying to stabilize the situation: “Don’t panic, the technology is still there, RWA is the future, the team will step up.” The community is divided into two camps: one side demands that the team publicly disclose all wallet transactions, while the other side calls for giving MANTRA time. Historical issues have been brought up—such as delayed airdrops and unfair governance—making every response from the team feel like dancing on a tightrope.

MANTRA promises to hold an AMA in X, disclose more on-chain data, and attempt to rebuild trust. However, investors are no longer easily believing sweet words. A anonymous community member lamented: ‘We are chasing dreams, but end up falling into a trap.’ This crisis not only tests MANTRA, but also casts a shadow on the credibility of the entire RWA track.

The next LUNA crisis? The crossroads of the industry

The ripple effect of OM flash crash is spreading rapidly, with the market linking it to 2022 Terra The flash crash of LUNA is likened to it. Both share similarities: high-profile concepts, highly concentrated tokens, and fragile market trust. A report from the crypto data platform Messari shows that trading volume of RWA tokens dropped by 18% after the flash crash, significantly shaking investor confidence.

Analysts warn that token centralization is the fatal flaw of DeFi, a crisis similar to the OM incident may be repeated in other projects. The more profound impact lies in regulation: the OM incident may prompt global regulators to re-examine the token distribution and governance transparency of DeFi projects.

For MANTRA, a flash crash is a test of life and death. If the team fails to fulfill transparent commitments, the project may lose community support completely. However, if this crisis can be used to optimize governance, the long-term potential of RWA may still have hope. Regardless of the outcome, this crisis sounds the alarm for the cryptocurrency industry: trust is more precious than technology.

Learning from the Rubble: Investor’s Survival Guide

OM flash crash is a bloody lesson, reminding every crypto player: there are no eternal winners in the market. First, tokenomics is the lifeblood of a project, concentration and transparency are red lines. Secondly, low liquidity is a time bomb, retail investors need to beware of the trap of overvalued tokens. Thirdly, the voice of the community is a compass, ignoring public opinion is digging one’s own grave.

Investors should learn to conduct independent research, consult whitepapers, on-chain data, and community discussions, rather than blindly following speculation. Diversifying investments, setting stop-loss orders, and staying calm are the golden rules to survive in the cryptocurrency jungle.

The flash crash of MANTRA (OM) is an unfinished drama. The instant collapse of a hundred billion market value exposes the vulnerability and madness of the crypto market. Whether the team can regain trust through actions, whether the community can find consensus in division, whether the market can grow from the lessons learned, it is still inconclusive.

But for investors, this storm is a wake-up call: before chasing the stars and the sea, make sure the boat under your feet is sturdy enough.