The value of Mantra’s OM token plunged by more than 90% in just hours this month. The crash wiped out liquidity over one weekend, sending shockwaves through the market.
One crypto wallet felt the pain most of all. According to blockchain tracker Lookonchain data, the wallet had pulled 2.9 million OM tokens, worth $18.7 million at the time, from Binance for $6.46 each.
Within 14 hours, it sent back 1.72 million tokens to Binance, fetching just $1 million. That swing left the holder staring at a roughly $17 million loss.
$OM’s Price Actions
Today, OM tokens change hands for just $0.5417. In the past 24 hours, the price dipped by another 6%. Yet trading activity shot up. Volume jumped nearly 70% as anxious investors scrambled to buy or sell.
Also Read: MANTRA Co-Founder Thanks Supporters Amid $OM Crash, Explain Future Steps As Prices Bounce Back 29%
The token’s market cap now sits at $521.85 million, which is significantly down since the crash. Many traders compared this sudden fall to earlier black‑swan events in crypto, recalling Terra‑Luna’s dramatic collapse.
Industry Concerns
Gracy Chen, CEO of the Bitget exchange, noted that the OM crash exposed deep‑rooted problems in the crypto world. She pointed to thin weekend liquidity as a key factor.
With fewer buyers and sellers on hand, a sudden sell‑off can trigger steep, unpredictable drops. The OM event highlighted how fragile token markets can be when trading thins out.
Community Outcry and Insider Worries
Rumours swirled that insiders may have known about the looming crash. Accusations of unfair advantage and leaky information only heightened distrust. As questions mounted, the Mantra DAO founder stepped forward with a dramatic gesture.
John Paul Mullin announced he would burn his full allocation of 772,000 OM tokens. This move aims to show accountability and restore some faith among shaken investors.
Lessons for Traders
The OM incident underlines the risks of staking too heavily in a single token. Sudden liquidity gaps can turn profitable trades into huge losses in hours. It also shows that tokens praised as “investment‑grade” can behave like high‑risk bets when markets thin.
Traders are now urging exchanges and project teams to build safeguards for low‑volume periods, especially over weekends and holidays.
Path Forward
In response, Mantra’s core team has promised more transparent communication and improved risk controls. They plan to work with exchanges to set up circuit breakers or other measures to curb extreme swings.
The OM token crash is a stark reminder that crypto markets can turn on a dime. While the promise of high returns draws many to digital assets, the risks of sudden, deep losses remain very real.
Also Read: Analyst Predicts Breakout Above $7.60 Resistance Could Propel Mantra ($OM) to New All-Time Highs