Mantra's OM Token Plummets 90% in 24 Hours, Erasing $6 Billion

Mantra's OM token experienced a dramatic crash, losing over 90% of its value within a 24-hour period. The token, which was trading at approximately $6 before the drop, plummeted to $0.37 on April 13, 2025, before slightly recovering to around $0.80. This sudden decline erased nearly $6 billion from its market capitalization, causing widespread alarm among investors.

Mantra co-founder John Patrick Mullin attributed the crash to forced liquidations executed by centralized exchanges. In a post, Mullin dismissed rumors of insider trading or a deliberate rug pull, asserting that all tokens held by the team and its investors remained locked under strict vesting schedules. He argued that the exchanges triggered these sales during low-liquidity hours, exacerbating the price spiral and devastating holders. Mullin questioned the timing of the liquidations, which occurred on a Sunday evening UTC, suggesting negligence or intentional market manipulation by the exchanges. The Mantra team has launched an investigation into the incident and plans to address concerns and chart a path forward.

Mantra has carved a notable niche in the blockchain world, focusing on tokenizing real-world assets (RWA) with high-profile partnerships like Google Cloud and DAMAC Group bolstering its reputation. Its recent $1 billion deal with DAMAC and a Virtual Asset Service Provider license from Dubai’s regulatory authority had fueled optimism, making this abrupt downturn all the more jarring. The crash has cast a shadow over what was seen as a promising player in the RWA sector.

The fallout from this crash has rippled beyond Mantra, spotlighting broader issues with centralized exchange practices and the fragility of RWA tokens. Industry figures have called for stronger safeguards and transparency to prevent such debacles. The parallels to past crypto disasters have only heightened the unease. For now, Mantra’s future hangs in the balance as it grapples with shattered trust and a battered valuation. The team’s ability to uncover the crash’s root causes and convince investors of its resilience will be critical. This episode stands as a sobering reminder of the wild risks lurking in the digital asset frontier.