Massive Sell-Off Hits OM Token as MANTRA Confirms No Team Involvement in Crash

OM token crashed 92% due to forced sell-offs, with MANTRA confirming no internal sales and launching a full investigation

Fridah Kangai
April 17, 2025
3:46 pm

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

MANTRA confirms none of its locked Mainnet tokens were involved in the sudden 92% OM token price crash.
Forced liquidations during low trading volume triggered a rapid sell-off of circulating ERC-20 OM tokens.
CEO John Patrick Mullin pledges to burn team’s token allocation as part of recovery and transparency plans.

OM token prices dropped abruptly by 92 percent on April 13, exactly at 18:28 UTC, triggering a wave of panic throughout the holder community before the MANTRA team started their investigation. The occurrence brought widespread worry because of how fast and large-scale the market decline became.

Soon after the crash, MANTRA conducted an internal investigation to determine what caused the crash while validating the number of OM tokens in circulation. The Mainnet token allocations to team members and advisors are entirely locked while maintaining full disclosure that team sales never occurred during this period.

The public holding of ERC-20 OM tokens released in August 2020 caused the market crash. The latest data from April 15 shows that more than 99.995 percent of these tokens are spread across 123,000 public wallets, thus proving the market acted independently to push trading activity.

ERC-20 Market Dynamics and Liquidations Drive Sudden Price Fall

A substantial amount of OM tokens moved toward exchange platforms for use as exchange assets. The market experienced reduced liquidity while the OM token transfers happened at this time, which made pricing drops and led to liquidation effects.

The price decrease resulted in automatic sales triggered by liquidation systems, which worsened the market’s decline. The continuing price decline triggered multiple sales, influencing progressively more significant losses through a self-perpetuating effect. The exchange price differences between OKX and Binance led to market instability and slowed the market stabilization process.

To recover trust and minimize risks for the future, MANTRA put forward a comprehensive action plan. OM token users will benefit from the team’s plans to repurchase and destroy tokens, along with CEO John Patrick Mullin’s personal promise to combust the team allocation.

The project seeks to intensify exchange partnerships to enhance understanding of market trading activities. A new dashboard offering real-time tokenomics information about supply and wallet distribution will become available for community members.

Market structures show significant vulnerability, creating severe outcomes through automatic selling strategies and decreased trading traffic. MANTRA has started investigating while proposing measures to stop market collapse occurrences and build market stability.

Also Read: XRP ETF Launch Could Be Just Days Away as ProShares Sets April 30 Target Date