Here’s What Happened On-Chain Before Mantra’s OM Token Collapsed Over 90% in an Hour

The OM token from the Mantra chain saw a catastrophic price collapse, dropping by over 90% in just one hour. 

This sudden downturn wiped out $5.5 billion in market value, sending shockwaves through the crypto community. While the Mantra team maintains minimal involvement, the chain of events suggests that a series of internal and external factors contributed to the dramatic crash.

OM Token Deposit That Triggered Market Movement

According to one X report, the trouble began when a wallet possibly associated with the OM team deposited 3.9 million OM tokens on the OKX exchange. This event caught the attention of the crypto community, as the OM team controlled nearly 90% of the total token supply. 

Over the past year, the team has faced criticism for allegedly using market manipulation tactics to inflate the price of OM. However, this latest deposit appeared to set off a chain reaction that would send the token’s value in a downward spiral.

Soon after the deposit, large-scale selling began, raising suspicions of prior over-the-counter (OTC) deals made at steep discounts, possibly as high as 50%.

These deals would have placed significant amounts of OM into the hands of major holders, who now found themselves underwater when the price dropped by half.

As the token’s value continued to fall, panic selling took hold. Fearing further losses, investors rushed to sell their positions, causing a cascading liquidation event that pushed the price to its breaking point.

Exchange Actions Fuel the Crisis

In the aftermath of the crash, Mantra co-founder JP Mullin addressed the situation, confirming that the market plunge was triggered by “reckless liquidations.” 

According to Mullin, exchange actions, such as closing positions without warning, margin calls, or adequate notice, exacerbate the situation. 

According to JP Mullin, the crash did not result from the team, its investors, or its core advisors selling tokens. He clarified that their tokens remain locked and are subject to the published vesting periods.

Mullin also emphasized that MANTRA has endured multiple market cycles and continued building when others stopped, and this situation is no exception.

OKX to Prepare Relevant Reports

Meanwhile, OKX CEO Star Xu described the OM token collapse as a major scandal for the entire crypto industry. He noted that all on-chain unlocking, deposit, collateral, and liquidation data are publicly available and can be investigated across major exchanges. 

Star added that OKX would prepare and release all relevant reports, following a report revealing that 17 wallets had deposited 43.6 million OM tokens, worth $227 million, to exchanges before the crash, with two wallets linked to Laser Digital, a strategic investor.

Community Reactions

Notably, Mantra’s official communication sought to reassure its community. The team emphasized that they were not responsible for the crash, stating that no team tokens had been moved during the incident. To calm the fears of their investors, Mantra reiterated that the project remained fundamentally strong despite the price collapse. 

However, the damage had already been done. Many investors expressed disappointment, with some calling for clearer explanations from the team about what led to the massive sell-off.

Crypto sleuth ZachXBT also weighed in, expressing concerns about the scale and speed of the crash. He questioned the logic behind the massive drop and noted that the explanation provided by the Mantra team did little to clarify the situation.

What kind of statement is this OM went down 90%+ from $5.9B to $500M mkt cap in a single candle…..

— ZachXBT (@zachxbt) April 13, 2025