The native token of the MANTRA blockchain project has plunged more than 90% in a single day, raising fresh concerns over the stability of real-world asset tokenization platforms.
On April 13, the price of OM, MANTRA’s native cryptocurrency, dropped from around $6.30 to below $0.50. The sharp fall erased over US$6b from its market capitalization in less than 24 hours.
The collapse came during a period of thin weekend trading, amplifying its impact across the broader DeFi ecosystem.
Some traders described the event as an apparent rug pull, drawing comparisons to past market collapses like Terra’s LUNA and the FTX fallout.
Image Source: CoinMarketCap
Mantra Founder Claims Crash Caused By Sudden Liquidation During Low-Liquidity Trading Hours
Investor Gordon, who posted on X, said it appeared that the MANTRA team may have been holding a large amount of the token’s supply, and the market “sold everything.” He called it the biggest rug pull since LUNA and FTX, warning that OM could “head to zero” unless the team responds decisively.
The MANTRA team has denied allegations of insider trading or intentional wrongdoing. In a statement, the project attributed the crash to “reckless liquidations.” It also claimed the protocol’s core fundamentals remain intact. “Today’s activity was triggered by reckless liquidations, not anything to do with the project,” the team posted on X.
JP Mullin, CEO and co-founder of MANTRA, offered further explanation. He claimed that a major OM holder faced a forced liquidation on a centralized exchange, which triggered a cascade of sell-offs. Mullin said the closures were initiated suddenly and without adequate warning, during low-liquidity hours in Asia. He suggested this may point to negligence by exchanges or possibly deliberate market manipulation.
Sherpas, OMies, and broader crypto community,
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…
— JP Mullin (
,
) (@jp_mullin888) April 13, 2025
Mullin also stated the sell-off did not involve the MANTRA core team, its foundation, advisors or early investors. “This dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens,” he wrote on X.
MANTRA’s Token Model Faces Renewed Scrutiny
Ran Neuner, a prominent crypto commentator, pushed back against claims of a classic rug pull. “I’m not telling anyone to buy but if it’s not a rug, this is not a natural dump,” he said, implying deeper structural issues may be at play.
MANTRA is known for its focus on real-world asset tokenization and operates as a permissionless Layer 1 blockchain. The platform attracted investors looking for exposure to tokenized real estate, infrastructure and other off-chain assets.
However, this week’s collapse casts doubt on its future. It also raises concerns about projects with concentrated token supply and reliance on centralized liquidity.
Further, Binance stated on X that its preliminary analysis suggests the incident stemmed from cross-exchange liquidations.
It also noted that since January, a pop-up alert has been active on its spot trading page for $OM. This alert warns users about major changes to the token’s economics, including a sharp increase in supply.
MANTRA has said a detailed post-mortem will follow. For now, OM continues to trade near multi-month lows as traders await clarity.
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