Just one day after a devastating crash wiped out
billions in value, Mantra’s OM token staged a dramatic rebound, surging nearly
50%. However, the rapid recovery has stirred fresh controversy, with industry voices
warning of risks reminiscent of the Terra/LUNA collapse in 2022.
OM’s price plummeted nearly 90% over the weekend,
briefly touching $0.5 before reversing sharply to hit $1.03 on Monday. The
sudden rebound came after the Mantra team addressed growing speculation that
the crash stemmed from a coordinated rug pull.
Mounting Fears and Accusations
In response to mounting accusations, Mantra co-founder
JP Mullin issued a statement assuring investors that the project remained
operational. “We are here and not going anywhere,” Mullin wrote, sharing a
token-holding verification address and noting that the official Telegram group
was still active.
1) A quick note to say how much I appreciate all the support the MANTRA team has received in the past 36+ hours. The support and kind words have come from many sources – from partners, investors, friends, and from the wider Web3 community. Thank you.
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 15, 2025
He claimed the crash resulted from “reckless forced
closures initiated by centralized exchanges” rather than any internal
wrongdoing. According to Mullin, these liquidations triggered a cascade effect
that wiped out over $5 billion in market capitalization and liquidated nearly
$76 million in futures contracts.
Despite the reassurance, critics remained skeptical.
Many online analysts flagged suspicious activity involving large OM transfers
to centralized exchanges just before the sell-off, leading to speculation that
insiders may have orchestrated the event.
Community discussions have increasingly drawn
comparisons to Terra’s LUNA, which collapsed following similar allegations of
market manipulation and structural fragility. While the price recovery may offer temporary relief to
OM holders, it has done little to resolve the deeper questions now surrounding
the project.
The stunning collapse has reignited fears of insider
trading and market manipulation, as traders accuse centralized exchanges and
market makers of coordinated misconduct.
No Compensation Plan, No Clear Path Forward
On April 13, OM plunged from around $6 to below $0.5,
leaving stunned investors scrambling for answers. Mantra’s team has denied
wrongdoing, but accusations of a pump-and-dump strategy involving insiders and
exchanges continue to gain traction.
In statements to the community, Mullin argued that
“reckless forced closures” by exchanges sparked the crash. He emphasized that
liquidity on platforms like Binance allowed large holders to offload tokens
quickly, triggering a freefall that decentralized platforms might have
buffered.
Many see the lack of prior communication, combined with the suspicious transfer
activity, as evidence of either insider misconduct or severe structural
failure. As of now, Mantra has not announced any recovery or
compensation plan. OM continues to trade far below its peak, and sentiment
within the community remains grim.
This article was written by Jared Kirui at www.financemagnates.com.
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