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The cryptocurrency market is witnessing signs of recovery; however, the steep decline of the Mantra (OM) token has created significant anxiety among investors. In a very short timeframe, the OM price plummeted by nearly 90%, leading to severe financial losses for holders. Reports indicate a loss of around $400 million, with a notable decrease of $6 billion in the overall market value. This abrupt fall in OM’s price occurred during a period when on-chain analyses and investor movements were closely scrutinized. Experts suggest that the incident has a similar impact to the LUNA crisis and may induce short-term tremors in market confidence.
Suspicious Investor Movements Trigger the Decline
According to an analysis by the crypto tracking platform Spotonchain, 19 new wallets were created just three days before the collapse, holding a total of 14.27 million OM valued at $91 million. This movement intensified price volatility, paving the way for the subsequent decline. It was reported that investors acquired these OM tokens through major exchanges like Binance before the price crash occurred.
Additionally, on-chain analyses conducted by A Lookonchain revealed that approximately 227 million tokens, equivalent to 4.5% of the circulating OM supply, are controlled by only 17 different investors. This significant selling pressure is believed to have played a crucial role in the dramatic plunge of the OM price.
Market expert StarPlatinum emphasized that such movements are linked not only to technical indicators but also to psychological investor reflexes. Waves of sudden sales can incite panic, prompting other investors to follow suit.
Mantra Team: “Forced Liquidations Accelerated the Process”
Patrick Mullin, co-founder of Mantra, clarified that the decline was not orchestrated by the Mantra team or their advisors. He stated that OM tokens remain locked and are being managed in accordance with predetermined maturity periods. Mullin also noted that the tokenomics of OM has not changed, and all wallet addresses are transparently accessible online.
The company’s statement highlighted that forced liquidations on centralized platforms contributed significantly to the price drop. Automatic liquidation of investors’ positions due to the depreciation of their collateral values led to a rapid decline in price. Such scenarios can trigger chain reactions within the market.
Currently, the price of the Mantra token hovers around $0.8, with a total market capitalization of approximately $761.45 million. Experts emphasize that it is crucial for investors to remain calm during recovery phases following such sharp declines.
