MANTRA (OM), the native token of the MANTRA blockchain—designed to tokenize real-world assets with built-in regulatory compliance—suffered a dramatic collapse on Sunday, shedding over 90% of its worth in just some hours.
The sharp downturn wiped greater than $5.25 billion from its market capitalization, marking one of the vital extreme single-day drops in crypto this 12 months.
MANTRA (OM) Value Takes Sudden Nosedive
On Sunday, April 13, MANTRA (OM) plummeted from $6.3 to $0.42, shedding over 94% of its market worth inside hours.
Whereas the crash itself was extreme, the underlying trigger was not a failure of the challenge or its crew, MANTRA’s crew said on Sunday.
CEO John Patrick Mullin stated the steep value drop resulted from “reckless compelled closures” by centralized exchanges throughout low-liquidity hours, reasonably than inner promoting.
Sherpas, OMies, and broader crypto neighborhood,
First off, the crew and I enormously recognize the help that we’ve got acquired over the previous a number of hours, which we imagine is a testomony to the robust help MANTRA has amongst its buyers and neighborhood.
We have now decided that…
— JP Mullin (
,
) (@jp_mullin888) April 13, 2025
Mullin emphasised that OM tokens stay locked and the challenge’s tokenomics are unchanged.
“Tokens stay locked and topic to the revealed vesting durations. OM’s tokenomics stay intact, as shared final week in our newest token report. Our token pockets addresses are on-line and visual.”
CEX Liquidations Are usually not Uncommon
Based on CoinGlass information, the sudden crash of MANTRA (OM) triggered greater than $71.8 million in liquidations over the previous 24 hours.
CEX liquidations aren’t uncommon in crypto, particularly when leveraged positions are closed throughout low-liquidity durations. This typically leads to sudden and excessive value fluctuations.
Whereas such sharp declines are uncommon, they don’t seem to be with out precedent—different tokens have suffered related crashes throughout market downturns, typically exacerbated by compelled liquidations and margin buying and selling.
MANTRA’s Push into Actual-World Property Faces Setback
The current sharp value drop comes simply months after MANTRA made a serious transfer into real-world asset (RWA) tokenization, together with a $1 billion partnership with Dubai-based conglomerate DAMAC.
In February, the challenge additionally obtained a VARA license to legally function within the United Arab Emirates, aiming to fulfill rising demand for blockchain-powered actual property funding options.
Final 12 months, a Hong Kong court docket ordered six people related to MANTRA DAO to reveal monetary data after a lawsuit alleged that they had misused DAO property. The defendants argued that the property belong to token holders, to not them personally.
Why This Issues
The crash highlights the vulnerability of crypto initiatives to exterior market forces. For MANTRA, this setback challenges its place within the RWA tokenization house and will have broader implications for blockchain-based RWA funding options.
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