OM, the native token of Mantra, suffered a sudden collapse on April 13. In just a matter of hours, its price tanked from over $6 to below $0.50. The crash erased billions in value and stunned both long-time supporters and casual traders. Few expected the token to lose over 90% so quickly, especially after weeks of positive momentum.
The fall sparked intense panic in the market. OM had been gaining traction due to its ambitious roadmap and regulatory wins. But that didn’t shield it from a sharp, brutal reversal. The event raised serious concerns over what caused such a steep decline and whether the project can recover.
Sharp Decline Catches Market Off Guard
From: Coin Gecko
Just days before the crash, OM was rallying. Mantra had announced major developments, including regulatory approvals and partnerships tied to real-world asset tokenization. Traders saw this as a bullish sign. The token appeared stable. Then, without any clear catalyst, prices began to slide.
The dip turned into a freefall. Within minutes, OM broke critical support levels. As the value dropped further, the selling pressure intensified. Leveraged positions started liquidating automatically. This triggered even more downward action. Many couldn’t exit in time.
Chaos and Speculation Spread Fast
The market had no immediate explanation. As OM’s value collapsed, traders rushed to find answers. Some blamed whales. Others pointed at insider dumps or possible hacks. On-chain data showed large movements of OM, adding fuel to the speculation.
Social media lit up with confusion. The absence of official communication made it worse. Screenshots, wallet histories, and rumors spread in every direction. With no clarity from the team at first, fear took control of the narrative.
Leadership Breaks the Silence
As pressure mounted, Mantra co-founder JP Mullin addressed the issue. He publicly denied insider involvement or coordinated manipulation. Mullin explained the drop as the result of mass liquidations across multiple exchanges. According to him, the crash wasn’t caused by bad actors, but by cascading stop-losses and over-leveraged traders.
He even posted screenshots of wallet addresses to prove the team hadn’t sold tokens. The explanation helped ease some of the panic. Still, many in the community wanted more—formal reports, third-party audits, and detailed reviews of what really went down.
Brief Bounce, Then More Uncertainty
After the initial crash, OM saw a short-lived recovery. Some traders bought the dip, betting on a rebound. Prices climbed back near $1, sparking brief optimism. But the bounce didn’t last. The token couldn’t hold gains as volume dried up and confidence remained shaky.
Volatility kept traders on edge. With no clear trend, both bulls and bears hesitated to make big moves. Some hoped OM had found a bottom, but others remained cautious, unsure if another sharp drop was around the corner.
Big News, But No Cushion Against Risk
Mantra had recently secured a $1 billion tokenization deal with DAMAC. The project also received licensing approval from Dubai’s Virtual Assets Regulatory Authority (VARA). These announcements had fueled OM’s previous rally. From the outside, things looked strong.
But the crash proved that no amount of good news can protect a token from high-risk trading behavior. Even solid fundamentals couldn’t stop the domino effect once fear and leverage kicked in. The event showed how quickly sentiment can turn.
Leverage Turned a Dip Into a Meltdown
The use of leverage was at the heart of the crash. Many OM holders had long positions with high leverage. When the token dipped, margin calls kicked in. This led to liquidations, which drove the price down further. That created a self-reinforcing loop of selling.
In crypto, these kinds of chain reactions are common—especially with smaller-cap tokens and limited liquidity. Once the price begins to fall, it can spiral. OM’s drop became a textbook example of how leverage can amplify risk and crush confidence in minutes.
Community Pushes Back, Demands Change
As OM fell, investor frustration grew. Many asked why there were no protective measures in place. Calls for better tokenomics, circuit breakers, and transparency filled forums. Some users demanded governance changes, while others asked for leadership accountability.
Even though the team responded quickly, the community wanted more than words. Trust had been damaged. To rebuild it, Mantra now faces pressure to open its books, show operational transparency, and review how risk is handled going forward.
Impact Extends Beyond One Token
OM wasn’t the only asset to suffer. Its crash had a ripple effect across other low-liquidity tokens. Traders saw the panic and pulled out of similar projects, fearing a chain reaction. Some centralized exchanges even paused OM trading briefly to contain the damage.
This event served as a warning to other teams. Price isn’t the only signal of strength. Without strong protections and clear communication, any token can fall victim to a sell-off—even in the middle of bullish momentum.
What Mantra Must Do Now
Mantra still holds valuable assets: regulatory licenses, strategic partners, and a growing vision in the real-world asset (RWA) space. But moving forward, it must earn back trust. The crash has placed the spotlight on risk, not innovation.
To recover, the team will need to launch a full review, introduce new safeguards, and communicate clearly with its community. Rebuilding confidence won’t happen overnight. It will require consistent transparency and actual reform—not just reactive statements.
Lessons for the Industry
The OM meltdown reveals a hard truth in crypto. Strong fundamentals don’t always protect tokens from crashes. Over-leverage, limited safeguards, and fast-moving fear can destroy value in hours. Even well-backed projects need robust risk frameworks.
It’s a wake-up call for developers, traders, and investors alike. Risk management isn’t optional—it’s essential. The OM incident shows that even promising ecosystems can suffer if risk is ignored.
Is Recovery Still Possible?
Despite the damage, OM isn’t dead. If the team acts quickly and listens to its community, the token could recover. The real-world asset narrative is still growing. Mantra is well-positioned to lead that charge, but only if it rebuilds credibility.
Investors are watching closely. If Mantra can back up its vision with clear action and strong safeguards, OM may bounce back. But the margin for error is now razor thin.
Final Thoughts
OM’s 90% drop was one of the most violent in recent memory. It shocked the market, exposed deep flaws in leverage use, and reminded everyone how fragile confidence can be. One moment, a token is flying. The next, it’s in freefall.
Mantra’s future depends on how it responds in the coming weeks. A strong recovery is possible—but only if the project focuses on security, transparency, and investor trust. The crash was painful, but it doesn’t have to be the end.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research before making any financial decisions.
