- Mantra (OM) token price collapses more than 90% in single day’ shock event
- Lookonchain data points to massive whale dumps (43.6 million OM) preceding crash
- Crash revives past allegations about Mantra team/history (WuBlockchain)
Investors watched in shock as Mantra (OM) – a real-world asset tokenization protocol, plunged by over 90% in just one day, dropping from a daily high of $6.34 to a low of $0.4222 before recovering slightly to $0.7597.
Just two months ago, OM was trading near its all-time high of $9, as per CoinMarketCap data, making this one of the steepest collapses in recent altcoin history, uneasy comparisons to past infamous crypto failures such as the LUNA/UST crash.
Did Whale Dumps Trigger Mantra’s Collapse?
The sell-off doesn’t seem entirely market-driven. This is because blockchain analysis firm Lookonchain identified at least 17 wallets that dumped a total of 43.6 million OM tokens (worth $227 million at the time) into exchanges since April 7.
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This amount represented 4.5% of OM’s circulating supply, strongly pointing to a large-scale offload by large holders. Notably, Arkham Intelligence connected two of the involved addresses to Laser Digital, a known strategic investor in the MANTRA project.
The immediate market outcome was a 2,919% spike in trading volume within 24 hours and a collapse in market capitalization from $6 billion to just $737 million, knocking OM down near 80th place in global crypto rankings.
As OM Crashes, Past Allegations About Mantra Team Resurface
This chaotic price action brought older, serious questions about the Mantra project and its team back into the public discussion, notably amplified by crypto commentator WuBlockchain who repeated his long-held worries.
Back in 2021, Wu warned that Mantra DAO was composed of former members of the online gambling platform 21Pink. He also accused the team of falsely claiming investment from FTX, by the now-defunct exchange itself.
In a December 2021 post, Wu also highlighted backlash from Chinese crypto community leaders following OM’s listing on Binance, with critics then labeling it a “fraud project” and pointing out the founding team’s history with questionable ICOs and casino ventures.
Mantra Team Blames “Reckless Liquidations,” Denies Involvement
In the wake of the bloodbath, Mantra took to X (formerly Twitter) in an attempt to reassure its community:
“MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team.”
The protocol promised to investigate the situation and provide a detailed explanation soon, but for many holders, the damage may already be done.
OM Price Analysis: Deeply Oversold, Where Could Price Stabilize?
Looking at the daily chart below, it is clear that OM entered a sharp downward move as sellers overwhelmed buyers. While being one of the most sought-after protocols this cycle, Mantra has disappointed investors.
The Relative Strength Index (RSI) has entered the oversold region, reading a value of 15.68, confirming that the sellers are dominating. The gradient of the line suggests consolidation until buyers start gaining the upper hand.
After losing the lower Bollinger Band support at $2.49, investors can expect OM to consolidate in the $0.4-$0.7 price level before reaching for the $1 price tag in the near future. A major resistance level is at the 20-day Exponential Moving Average (EMA) at $5.38.
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