On Sunday, the MANTRA crypto project suffered a massive crash in its OM token’s value. Investors saw the token fall by nearly 90% amid trading activity across global exchanges.
A suspected insider sale is blamed for the crash that erased nearly five billion dollars in market value. The drop affected thousands of traders who valued the coin as a promising asset in the crypto space. This decline happened suddenly, causing panic among investors and raising questions about the project’s trust and future.
Market Impact
Currently, the OM token trades at $0.8258 after its severe plunge in price. Trading records show a drop of nearly 86% in the past day, signaling a major loss for many holders.
The coin’s overall market cap now stands at around $800.49 million, which marks a drastic decline from its previous levels. Trading volume has surged by almost 3000% in the last 24 hours, indicating unusual activity in market orders.
These figures show the extreme volatility of the current crypto market and spark fresh worries among investors.
Investor Concerns
Some investors suspect a major insider sold most of its holdings suddenly, sending shockwaves across the community. Reports indicate that nearly 90% of circulating tokens were dumped quickly.
Claims surfaced that a market maker may have helped initiate the sale in a secretive manner. The MANTRA team firmly denies any such actions or related misconduct during the trading session. Many posts on social media compare this incident to previous crypto crashes that shook the industry.
The Role of Liquidations
An official statement on the X(Twitter) account blamed reckless liquidations for the rapid drop in the token’s price. The team claims that external actors triggered the crisis with no relation to internal decisions.
They added that not all communications were under their control during the crash. The swift sell-off came amid ongoing market stress and rapid token movements. This incident raises serious issues about liquidity and risk management in volatile crypto trading.
Community Reaction
Users on social media quickly voiced their shock at the rapid price drop and unforeseen crash. An on-chain analyst questioned the claim of reckless liquidations in the market after the steep decline.
Many investors expressed worry about losing a significant part of their investments because of this downturn. They noted similarities to past events like Terra Luna’s downfall in 2022, which also shook investor trust. The community calls for thorough investigations to restore confidence in MANTRA’s project and market practices.
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Response from the MANTRA Team
MANTRA’s official X(Twitter) account provided a clear statement to calm investor fears during the crisis. The statement described today’s collapse as caused by reckless liquidations and external factors.
The team emphasized that no internal actions led to the massive crash and denied any team involvement. Co-founder JP Mullin reassured investors that the project would not be abandoned despite the setback.
He shared a wallet address that shows team-held tokens during the incident, hoping to restore trust.
What the Crash Means?
This significant decline shows the harsh risks that crypto investors face every single day. The crash signals a deep lack of market confidence among many experienced traders and observers.
Analysts stress that liquidations in volatile markets can lead to sharp price falls in very short periods. Many investors fear that similar collapses could occur in other crypto projects if risk management fails. The situation urges investors to act cautiously and study market trends before making new trades.
Experts conclude that this event marks an important wake-up call for the crypto market worldwide. The crash may encourage stronger controls against rapid liquidations and risky trading practices. MANTRA’s leaders promise to share more details once their investigation into the matter is complete.