OM Token Crash Reason!!!

Mantra CEO JP Mullin says the price drop of OM happened because centralized exchanges had to sell off assets. OM's price fell from about 6.50 to 0.3 in a few hours. Mullin explained that this happened suddenly on a Sunday evening when trading was low, which made the situation worse.

He noted that the drop was not because the Mantra team or its investors sold their tokens, as these tokens are still locked according to the vesting schedule. He also stressed that the project is committed to the long term and asked the community to keep supporting it.

However, some analysts disagree. Crypto analyst Max Brown said the sell-off began when 3.9 million OM tokens were deposited on OKX from a wallet thought to be linked to the Mantra team. With the team holding almost 90% of the total supply, this raised concerns and led to panic selling.

The sell-off wiped out over 5.5 billion in market value, bringing OM's market cap down from $6 billion to below 485 million at its lowest. OM is currently trading at $0.8623, down 90% from its highest price of 8 in February. The trading volume surged over 2,500% in the last 24 hours, reaching 1.9 billion.

Mantra, designed to follow regulations and focus on real-world assets, has been in the news for its partnerships and regulatory achievements. In January, it made a 1 billion deal with real estate company DAMAC to tokenize assets. It also got approval to operate legally in the UAE with a license from Dubai’s VARA.

Despite these developments, the price crash has revived earlier criticisms of the project. Wu Blockchain, a popular news channel, shared a warning from 2021 about Mantra’s founders, linking them to a gambling site and earlier false investment claims. Some traders are worried about the project's transparency and trading processes, likening this crash to past failures like Terra.

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