MANTRA: The token OM's plunge is triggered by reckless liquidation and has nothing to do with the project itself

Golden Finance reports that the OM token of the Layer 1 blockchain project MANTRA, focused on RWA, dropped by about 10% between 01:20 and 02:20 AM (UTC+8) today. It then suddenly plummeted from $5.21 to approximately $0.50 (as of the time of this report), experiencing a 90% drop in just 90 minutes. Before access to the project's public Telegram group was restricted, community leader Dustin McDaniel downplayed accusations of team sell-offs, stating he was unaware of any issues. At 04:51 AM, MANTRA's X account updated that the crash was triggered by reckless liquidations and had nothing to do with the project itself. Co-founder John Patrick Mullin mentioned that large OM investors faced massive forced liquidations on CEX and stated they were addressing it.

Previously, MANTRA had been accused of controlling a significant portion of the token's circulating supply in an attempt to manipulate its price. In response, Mullin said: "The OM token has been circulating since August 2020, longer than most skeptics have been in crypto." Some investors pointed out that DeFiLlama data shows MANTRA protocol's TVL is only about $13 million while its fully diluted valuation reaches as high as $9.5 billion, which could be a risk signal.