The OM token from Mantra experienced a dramatic collapse, dropping over 90% and erasing $5 billion in value following suspicious trades leading up to the crash. CEO John Patrick Mullin denies insider trading, attributing the decline to forced liquidations. Additionally, Donald Trump aims to position the U.S. as a global crypto power, with recent regulatory changes favoured for digital assets.
The recent collapse of Mantra’s OM token highlights the volatility within the cryptocurrency market. While the token appeared robust with an 800% year-on-year increase and significant investments, it plummeted by over 90% in just a few days, leading to a loss exceeding $5 billion in value. This rapid decline triggered a wave of panic among traders as they searched for reasons behind the sudden drop.
The cause of the price crash was not due to a technical exploit but was linked to suspicious activities involving 17 wallets that transferred 43.6 million OM tokens (approximately $227 million) to exchanges like Binance and OKX shortly before the collapse. Speculations about over-the-counter fire-sales at drastically reduced prices intensified the situation, causing a sell-off that overwhelmed the already thin trading volumes and forced liquidations.
John Patrick Mullin, the CEO of Mantra, denied any allegations of insider trading and attributed the chaos to “reckless forced closures” imposed by centralised exchanges. He has pledged to implement a buyback for the token to support its value. In contrast, OKX critiqued the changes in Mantra’s token economics, emphasising issues of concentrated ownership. Additionally, notable investor Laser Digital refuted claims linking it to the selling panic, highlighting the importance of accurate wallet identification.
In another sector, former President Donald Trump has expressed intentions to establish the U.S. as a leading force in cryptocurrency during his second term. Legislative efforts have led to the removal of strict capital requirements on digital asset custody for banks and eased regulatory burdens associated with decentralized finance (DeFi). Furthermore, legislation has shifted the Department of Justice’s focus from regulating software to targeting genuine scams within the crypto space.
