- OM Token saw a 90% market plummet causing more than $5 billion to evaporate from its value within 24 hours because of trading system liquidations combined
- MANTRA CEO Mullin identifies Binance and OKX as the main culprits behind reckless liquidation actions
- The market crash prompted public authorities to reevaluate the regulatory requirements for centralized trading platforms alongside offshore trading services.
In a shocking development, the OM token—native to the MANTRA ecosystem—suffered a catastrophic 90% price collapse within a 24-hour span, erasing over $5 billion in value. The market-wide shock of this event has brought exceptional interest to both cryptocurrency investors and market analysts.
OM Crash Tied to Forced Liquidations
The crash has brought CEO John Patrick Mullin of MANTRA into the spotlight because he blames centralized exchanges led by Binance for the market collapse. Mullin stated that the extreme price reduction happened when exchanges took reckless actions during their periods of low trading volume rather than because of team members selling tokens or manipulating markets.
Mullin stated that MANTRA was not responsible for the drastic price decline because the team played no role and the rapid market movement stemmed from defective unregulated offshore trading platforms.
According to Mullin the centralized exchange control system let them start forced liquidations when prices were lowest. Internal manipulation of OM’s price led to market volatility according to his argument which negatively impacted OM’s value throughout the whole system.
OM Sell-Off on OKX Sparks Chain Reaction
The crash appears to have started on OKX when an estimated 4M OM tokens were sold, triggering a steep price drop due to weekend illiquidity. The price fall below $3 dollars ignited a chain reaction systemwide which caused losses for market makers and OTC buyers and other stakeholders throughout the process.
During the chaos, the second-largest wallet on the OM network began transferring funds to exchanges, which added to growing suspicion among traders and market observers.However, the lack of verification confirms basic doubts about market transparency and risk in trading altcoins.
OM Crash Triggers CEX Scrutiny, MANTRA Denies Role
MANTRA has responded by reassuring its community that the project remains structurally sound and that internal reviews are ongoing. After this incident centralized exchanges along with unregulated trading environments have gained increased scrutiny in the market. The OM token dramatically collapsed while market participants await more information about its downfall to emerge from ongoing investigations. MANTRA has denied any internal connection to the collapse but the situation has triggered regulatory discussions.
