Binance Exposes Shocking Collapse of Mantra Coin: What Went Wrong?

In the world of cryptocurrency, a significant event occurred as the Real World Assets (RWA) based Mantra (OM) coin experienced a sudden and dramatic collapse. The value of OM coin plummeted by over 90% in a short period, causing panic among users who blamed Binance for the incident. In response, Binance issued a statement on the social media platform X, sharing intriguing details and explaining the background of the events. According to Binance, the primary reason for the fall of OM coin was a series of cascading liquidations occurring during off-exchange leveraged trading. The exchange noted that it had long taken various measures against such risks and had been warning users about changes in Mantra’s token since January.

OM Coin’s Price Plummets: A 90% Drop in Just One Hour

According to Binance’s statement, the decline in Mantra coin was triggered not only by on-exchange but also by leveraged trading on different platforms, leading to liquidations. As a result, the price of OM dropped dramatically from $6.31 to $0.70 within approximately one hour.

In just the last 24 hours, liquidations for OM coin exceeded $74.5 million. This figure indicates that more liquidations occurred during this period than for Ethereum (ETH) $2,552. Binance confirmed that it continues to closely monitor all developments related to OM and will take necessary steps to protect users.

Furthermore, Binance reminded users that special warning notices have long been present on the spot trading page, clearly indicating the risky nature of the coin.

Warnings Against Scams in the Cryptocurrency World

Binance also issued a general warning that extends beyond the Mantra example. The exchange emphasized that investors should remain vigilant against growing fraudulent activities in the cryptocurrency market. Notably, scams involving AI-generated deepfake videos impersonating well-known figures and projects are among the traps users frequently encounter.

Ripple $2 executives and Cardano $0.767471’s founder Charles Hoskinson are among those who frequently warn the community against such scams. Similarly, Binance reiterates that cryptocurrency investors should rely only on official sources and exercise caution regarding content promising high returns.

On the Mantra side, another controversial topic is that approximately 90% of the total coin supply is controlled by insiders. This situation raises concerns about centralization issues and potential manipulation.