The price of MANTRA's OM token suddenly plummeted by 90% in the early morning, with its team attributing it to "reckless liquidation."
ChainCatcher news, according to The Block, the OM token of the Layer 1 blockchain project MANTRA, which focuses on real-world assets (RWA), dropped by about 10% between 01:20 and 02:20 Beijing time today, and then suddenly plummeted from the then price of $5.21 to about $0.50 (as of the time of this media's report), experiencing a 90% drop in just 90 minutes. Before the project's public Telegram group became inaccessible, community leader Dustin McDaniel downplayed the accusations of team sell-offs, stating that he was not aware of the situation. At 04:51, MANTRA's X account updated that the crash was triggered by reckless liquidations and was unrelated to the project itself. Co-founder John Patrick Mullin mentioned that large OM investors faced massive forced liquidations on CEX and stated that they were addressing the issue.Previously, MANTRA had been accused of controlling a large portion of the token's circulating supply in an attempt to manipulate the token price. In response, Mullin stated, "The OM token has been in circulation since August 2020, longer than most skeptics have been in the crypto space."Some investors pointed out that DeFiLlama data shows the MANTRA protocol's TVL is only about $13 million, while its fully diluted valuation is as high as $9.5 billion, which could be a risk signal. Additionally, Insomniac, the governance lead at Castle Labs, discovered that three wallets recently transferred millions of dollars worth of OM tokens to OKX and Binance, with one wallet receiving about $36 million worth of OM tokens from Binance on March 21 and then transferring about 4.3 million tokens to OKX on Saturday, suggesting a potential sell-off.
