Mantra (OM) Token Collapses, Erasing Billions: A New Terra LUNA-style Crisis?

In an unexpected turn of events, the cryptocurrency world was shocked by the collapse of the Mantra (OM) token, wiping out a staggering $5.4 billion in market value in just a matter of hours. 

This sudden and drastic price drop has drawn alarming comparisons to the infamous Terra LUNA crash of 2022, causing panic among investors and raising critical questions about the stability of the cryptocurrency market. 

The crash, which happened on April 13, 2025, has left the community in shock and prompted experts to reconsider the risks of investing in highly centralized tokens.

Sudden Price Plunge Triggers Panic

On the fateful day of April 13, 2025, OM’s value plummeted from a stable price of $6 to an almost worthless $0.57, marking an astonishing 98% decline in value. This rapid collapse erased more than $5.4 billion from the token’s market capitalization, sending shockwaves through the cryptocurrency space. 

This massive drop was largely triggered by a massive sell-off, with a wallet tied to the Mantra project reportedly dumping 3.9 million OM tokens on the OKX exchange, causing an overwhelming supply that the market couldn’t absorb.

The speed of the collapse caught many investors off guard, leading to widespread panic and a rapid exit from the project. As the price of OM crashed, many traders rushed to sell their holdings, further driving the price down and triggering a cascade effect that saw even more panic selling. The result was a classic market meltdown, where fear and uncertainty compounded the damage.

Allegations of Insider Manipulation and Centralized Control

One of the most concerning aspects of the Mantra (OM) token collapse is the project’s centralization. According to reports, the Mantra team holds control over up to 90% of the OM token supply, which has raised suspicions of market manipulation. 

In addition to concerns about centralization, accusations have surfaced alleging that an insider group, known as the “Kabal team,” played a key role in the massive token dump that triggered the crash.

These allegations point to a deeper issue with the project’s structure and management, with critics claiming that the centralized control gives the team the power to influence the market unfairly. If true, this kind of manipulation could undermine investor confidence and raise red flags for other cryptocurrency projects with similar structures.

Community Fallout and Market Sentiment

Following the crash, the response from the Mantra DAO community and its leadership has been less than reassuring. Official channels have remained eerily silent, with the project’s Telegram group closing its doors to new members and the CEO failing to comment on the situation. 

This lack of transparency has left investors feeling abandoned and betrayed, compounding the sense of loss that many have experienced. The community’s frustration is palpable, and many are calling for answers.

From a market perspective, technical indicators are not looking favorable for OM in the short term. The Relative Strength Index (RSI), a tool used to gauge market sentiment, has dropped significantly, pointing to a bearish outlook. 

With little buyer interest and no clear communication from the team, OM is likely to remain under significant selling pressure until the situation is addressed, if at all.

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