On April 13, 2025, the OM token of the MANTRA startup experienced a sharp price drop of 92% in less than an hour. This triggered a wave of concern within the user community, who were curious about the reasons behind such a collapse. The project team quickly responded, stating that the key reason was mass liquidations of assets on centralized exchanges (CEX).
This is reported by Бізнес • Медіа
Team’s Response and Investigation Results
Representatives of MANTRA emphasized that during market fluctuations, the team did not make any sales of OM tokens. According to them, all assets allocated to the team and consultants remained locked, and the majority of the circulation was accounted for by holders of the ERC-20 version of the token, launched back in 2020.
“The most important fact is that the MANTRA team did not make any sales of OM during market turmoil,” the project stated.
Following an internal investigation, it was found that during periods of low trading activity on exchanges, forced liquidations of OM positions occurred, leading to a domino effect. Specifically, these liquidations caused a price drop, triggered automatic liquidations of other loans under the OM token, and resulted in additional sales and a price gap between the OKX and Binance exchanges.
“This created a self-reinforcing market spiral that significantly impacted the token’s price,” the team report stated.
Future Steps and Market Stabilization
The MANTRA team reported that the total supply of OM tokens is 1.81 billion, of which over 52% is in circulation, approximately 969.6 million. Of these, 92% are ERC-20 tokens fully available on the open market, while only 8% are MANTRA network tokens launched in October 2024. To stabilize the situation, the company announced a series of measures, including the launch of a buyback and burning program for OM tokens, as well as the public burning of the CEO’s team tokens by John Patrick Mallin.
Additionally, plans are in place to create an interactive dashboard with real balances of all categories of tokenomics and to collaborate with exchanges to align trading conditions during this crisis.
“I am burning my team tokens, and we will create a comprehensive program to burn other parts of the OM supply,” confirmed John Patrick Mallin on his Twitter.
The MANTRA team remains committed to stabilizing the market and restoring investor trust: “We remain fully operational and focused on taking all necessary measures to overcome this instability”.
More details about what exactly happened with the project and the reasons for the price drop can be found in a special feature article.