Mantra Loses $5 Billion Market Cap in 90% Crash

Just one day after plummeting by more than 90%, Mantra’s OM token has rebounded over 200%, briefly crossing the $1.10 mark after hitting a low of $0.37 on April 13.

The sharp rebound came after co-founder JP Mullin issued a public statement addressing concerns and denying speculation that the crash was a rug pull.

Mullin said the project was “not going anywhere,” shared a verification address for the team’s OM tokens, and blamed centralized exchanges for triggering the collapse via reckless forced liquidations.

The Mantra team also announced plans for a community connect session on X to further clarify the incident.

While the recovery brought some relief, chart analysts have compared OM’s recent price action to Terra’s LUNA bull trap in 2022.

Technical indicators show OM trading below its long-term support levels, including the 50-week and 200-week exponential moving averages, with the weekly RSI at 33.31, signaling weak momentum and potential for another breakdown.

Adding to concerns, blockchain trackers Lookonchain and Spot On Chain reported large OM deposits to exchanges just before the collapse, raising red flags.

Spot On Chain estimates one whale entity lost over $400 million, though it’s unclear if they hedged the position elsewhere.

Despite its recent strides in tokenized real-world asset infrastructure — including a $1 billion tokenization deal with DAMAC and a VASP license in Dubai — OM now faces an uphill battle to regain investor confidence.

As of now, OM trades around $0.72, well below its February all-time high of nearly $9.

Sources:

https://cointelegraph.com/news/mantra-price-collapses-by-over-90

https://cointelegraph.com/news/mantra-speculates-one-exchange-in-particular-caused-token-to-dump

https://cointelegraph.com/news/mantra-om-price-crash-bounces-200-luna-risk

https://docs.mantrachain.io/mainnet-om-information/why-build-on-mantra-chain

https://x.com/AltcoinGordon/status/1911498665786585397

https://x.com/jp_mullin888/status/1911529914110758943

https://x.com/jp_mullin888/status/1911559071263822020

https://x.com/jp_mullin888/status/1911581099303768454

https://x.com/torvaman_/status/1911580113268810108

https://x.com/spotonchain/status/1911599417762943156

https://x.com/lookonchain/status/1911584133652074662

https://x.com/AirdropGlideapp/status/1911567991671849236

https://x.com/AirdropGlideapp/status/1911589737238086059

https://x.com/MANTRA_Chain/status/1911522720623530311

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https://www.coingecko.com/en/coins/mantra

https://www.coinglass.com/currencies/OM