The crypto world woke up to chaos this past weekend as OM, the native token of the fast-growing Mantra blockchain ecosystem, experienced a brutal, 90% nosedive, plunging from an impressive $6.30 to a shocking $0.50 in a matter of hours.
While dramatic price swings are nothing new in crypto, the sheer speed and scale of this collapse rattled even seasoned traders, forcing Mantra’s CEO JP Mullin to step forward and break his silence.
What Triggered the Crash?
According to Mullin, the cause was neither rug pulls, insider sales, nor token unlocks. Instead, the blame falls on a deadly cocktail of forced liquidations triggered by leveraged trading positions and thin weekend liquidity on centralized exchanges.
“This wasn’t caused by us or by our investors,” Mullin clarified in a statement. “All OM tokens are still locked per our vesting schedule. No one on the team dumped anything. A large, leveraged position was liquidated, and in a low-liquidity market, it snowballed hard.”
Industry experts note that weekend trading hours, particularly during the UTC evening window, often see lower market depth — a vulnerability that was ruthlessly exposed during this OM flash crash.
Community Shaken, But Not Broken
As the token’s value spiraled downward, panic rippled through the Mantra community. Social media lit up with concern, fear, and frustration — but amidst the chaos, a familiar rallying cry from within the Mantra ecosystem emerged: “Stay strong, Sherpas.”
Mullin quickly addressed the community via X (formerly Twitter):
“First off, thank you to our OMies and Sherpas. The past several hours have shown just how resilient this community is. Yes — this was an unfortunate, external event, but we remain focused on our mission. Mantra is not built on hype — it’s built for the long-term.”
He assured holders that Mantra’s roadmap remains fully intact, with ongoing partnerships and RWA tokenization plans continuing as scheduled.
From All-Time Highs to a Test of Resilience
Just days before the collapse, OM had reached a record high of $6.13, fueled by Mantra’s high-profile move into real-world asset (RWA) tokenization. A standout moment came in early April, when Mantra announced a groundbreaking deal with MAG Group Holding to tokenize over $500 million in real estate assets across the UAE.
That deal placed Mantra among the top contenders in the booming RWA crypto sector, alongside platforms like Ondo Finance and Centrifuge.
Even now, some analysts suggest this selloff, while painful, could be a temporary market overreaction:
“If Mantra can maintain transparency, stabilize liquidity, and follow through on its RWA milestones, this could eventually be viewed as a shakeout rather than a death sentence,” noted crypto market analyst Ethan Blake.
A Broader Lesson for the Crypto Market
The OM token’s sudden collapse is a textbook example of how illiquidity, leverage, and emotion-driven markets can spark devastating moves. It’s a harsh reminder that crypto markets remain unforgiving, especially during low-volume periods.
Recent data from Coinglass highlights that crypto liquidations exceeded $340 million globally over the same weekend, driven by rapid price swings across mid-cap altcoins.
What’s Next for Mantra and OM?
The Mantra team is reportedly working closely with centralized exchanges to investigate how these aggressive liquidation cascades took place, and what safeguards can be introduced to prevent similar events in the future.
Looking forward:
- Continued progress in RWA partnerships and tokenization infrastructure.
- Possible improvements in liquidity management and exchange coordination.
- Ongoing community engagement and transparency efforts.
As Mullin put it:
“This isn’t the end. It’s a bump on a much bigger journey. The fundamentals of Mantra haven’t changed — and we’re just getting started.”
Final Thoughts
While the OM crash was undeniably severe, the Mantra community’s response, and the team’s swift, open communication, may yet set the stage for a comeback. In a market as volatile as crypto, resilience is often more valuable than perfection.
