The MANTRA team has published a report outlining the circumstances surrounding the events of April 13 related to the OM token. The document states that the sharp decline in the asset’s value was caused by mass liquidation pressure on centralized exchanges (CEX).
This is reported by Finway
On April 13, 2025, the OM token of the MANTRA startup experienced a sudden price drop of 92% in less than an hour. In response to a wave of concern from the community, the team emphasized that the incident occurred due to mass liquidations on exchanges. The company’s report states:
“The most important fact is that the MANTRA team did not conduct any sales of OM during the market turmoil.”
The team highlighted that at the time of the crash, all assets allocated to its members and advisors remained locked. The circulating supply of the OM token was primarily held by owners of the ERC-20 version of the token, which was launched in 2020.
As a result of the investigation, the team concluded that the liquidation of OM positions on CEX during low trading activity triggered a domino effect:
- initial liquidations put pressure on the price;
- this activated automatic liquidations of other loans under OM;
- subsequent sales further pressured the market;
- a price gap for the OM token emerged between the OKX and Binance exchanges.
The team noted that “this created a self-reinforcing market spiral that significantly impacted the token’s price.” Regarding the total supply of the asset, MANTRA representatives emphasized that it amounts to 1.81 billion OM, of which 969.6 million OM (52.2%) are in circulation. Among these, 92% are ERC-20 standard OM tokens, which are fully circulating in the open market, while only 8% are tokens from the MANTRA network, launched in October 2024.
The company announced a series of initiatives to stabilize the market and restore trust:
- Launching a buyback and burn program for OM tokens;
- CEO John Patrick Mallin promised to burn his share of tokens;
- Creating a Dashboard with live balances of all categories of tokenomics;
- Collaborating with exchanges to clarify trading details during this period.
In their address, the MANTRA team stated:
“We remain fully operational and focused on taking all measures to overcome this instability.”
Additional information about the reasons for the price drop and the situation with the project can be found in separate materials.