OM, the native token of Mantra, collapsed in value on April 13, plunging over 90% in just a few hours. What began as a normal trading day quickly spiraled into chaos. The token, which had been trading comfortably above $6, crashed below $0.50 before any clear explanation could emerge. Billions in value vanished almost instantly.
For many in the crypto space, the speed and scale of the drop came as a total shock. OM had been gaining momentum for weeks, riding on major announcements and strategic moves. Yet none of that prevented the fall. Traders, investors, and observers alike were left scrambling to understand what went wrong—and whether the project could recover.
A Collapse Few Saw Coming
From: Coin Gecko
Before the crash, OM was riding high on bullish sentiment. The token had posted solid gains throughout early April. Mantra had recently celebrated a wave of promising developments, including major institutional partnerships and regulatory wins. The token’s price action reflected that growing confidence.
But on April 13, the upward trend broke without warning. Within minutes, the price started to slide. And once it dipped below critical levels, panic selling kicked in. Those using high leverage had no time to react. Positions were liquidated en masse, pushing the token even lower. In just a few hours, OM had lost more than 90% of its value.
Panic Spreads as Speculation Takes Over
The lack of a clear reason made things worse. Traders rushed to social media to ask what had happened. Rumors quickly filled the void. Some speculated that the Mantra team had dumped tokens or manipulated the market. Others pointed fingers at whales or coordinated attacks.
On-chain data showed large transactions moving through wallets. Screenshots spread like wildfire. Without verified information, speculation drove the narrative. Fear and uncertainty took hold. And in crypto, fear spreads fast. The absence of clarity fueled the sell-off even further.
The Team Steps Up—But Doubts Remain
Mantra’s co-founder JP Mullin wasted no time addressing the situation. Within hours of the crash, he released a statement denying any foul play. Mullin explained that the crash was caused by cascading liquidations—not insider selling or external attacks. He even posted wallet screenshots to back up his claims.
Still, many investors weren’t satisfied. The drop had been too sudden, too deep. They wanted more than tweets and screenshots. The community called for full audits, formal risk assessments, and greater transparency moving forward. Mullin’s rapid response helped calm some of the panic, but trust had clearly taken a hit.
The Attempted Recovery
OM briefly bounced after the initial plunge. As prices dipped below $0.50, opportunistic traders began buying. The token rebounded to around $1, giving some hope that the worst was over. But the recovery didn’t hold for long.
Volatility remained extreme. Buyers weren’t confident, and sellers were still active. The market lacked direction. Although some believed the rebound marked the start of a turnaround, many others chose to sit on the sidelines and watch.
Strong Fundamentals, Yet Still Vulnerable
What made the crash even more surprising was how strong Mantra’s fundamentals had appeared. Just days earlier, the project secured a $1 billion tokenization partnership with DAMAC. It also obtained regulatory clearance from Dubai’s VARA, a move that should have boosted investor confidence.
Mantra was positioning itself as a leader in the tokenization of real-world assets. It had government backing, high-profile partners, and a clear roadmap. Yet despite all that, the token still collapsed. It was a reminder that even solid projects aren’t immune to market volatility and technical risk.
Leverage Turns Volatility Into Disaster
As more information emerged, one factor became impossible to ignore: leverage. Many OM traders had opened highly leveraged long positions. When the price began falling, those positions started getting liquidated. The forced selling created a feedback loop—each liquidation triggered more, which drove the price even lower.
This snowball effect is common in crypto markets, especially with thin liquidity. Once the downward momentum starts, it becomes hard to stop. In OM’s case, the combination of leverage and panic selling proved catastrophic.
Investors Push for Accountability
Even after the explanations, OM holders demanded more. Social media was flooded with calls for audits, transparency, and better risk management. Many felt betrayed—not necessarily because of fraud, but because of poor safeguards.
The community also criticized the project’s lack of circuit breakers. Some argued that token unlock schedules and liquidity protections were too weak. Others wanted a review of how the team handled treasury funds and investor communication. It became clear that rebuilding trust would require more than a few tweets.
Broader Market Feels the Shock
OM’s crash didn’t happen in isolation. As news spread, other tokens also saw sudden dips. Fear bled into other markets, especially among smaller-cap projects. Some centralized exchanges briefly paused OM trading to manage volatility.
The crash served as a warning to investors across the board. Even in a bullish market, sharp reversals can happen in minutes. It reminded everyone that crypto remains a high-risk environment where extreme caution is still necessary.
Mantra’s Path Forward
Now that the crash has passed, Mantra must focus on restoring its image. The project still holds valuable assets—regulatory approvals, big-name partners, and a solid use case. But none of that matters if user trust isn’t rebuilt.
Mantra will need to go beyond damage control. It must offer clear plans, stronger safeguards, and open lines of communication. Reputations are hard to repair in crypto, and investors are quick to walk away from projects that lose their trust.
What OM’s Collapse Teaches the Industry
The collapse of OM offers a crucial lesson for the entire industry. Leverage must be managed carefully. Transparency must be built in, not added later. And regulatory approvals, while helpful, aren’t enough to guarantee stability.
The crash also shows how quickly momentum can flip. Projects that appear stable and thriving one day can unravel the next. In such a volatile environment, no token is truly safe unless its risk mechanisms are bulletproof.
Is a Comeback Still Possible?
OM’s future is uncertain, but not hopeless. The project still has important partnerships, a working product, and a roadmap. If the team can deliver real improvements—especially in communication and risk controls—recovery is possible.
However, time is limited. The crypto market moves fast. Other projects will continue to rise, and attention will shift. If Mantra doesn’t act quickly and decisively, it could miss its window for a comeback.
Final Thoughts
OM’s 90% crash was one of the most dramatic collapses in recent memory. It exposed cracks in a project that had looked strong on the surface. It showed how quickly confidence can break when markets turn against a token.
The team responded quickly, but words alone won’t rebuild trust. The crypto community wants transparency, security, and leadership. If Mantra can deliver those, OM might recover. If not, it risks becoming another cautionary tale in a market full of them.
Disclaimer: This article is intended for informational purposes only and does not constitute financial or investment advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.
