The Mantra (OM) token has suffered a catastrophic collapse, plunging over 90% within a single day and triggering widespread panic across the crypto market. From a high of approximately $6.30, OM nosedived to under $0.50 on April 13, erasing more than $6 billion in market capitalization.
Once hailed as a major player in real-world asset (RWA) tokenization, Mantra’s crash has drawn comparisons to the infamous LUNA and FTX collapses. Prominent trader @Gordon on X warned, “The team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?”
Seems like the Mantra team were holding a large amount of supply and market sold everything.
— Gordon (@AltcoinGordon) April 13, 2025
Team needs to address this or $OM looks like it could head to zero.
Biggest rug pull since LUNA/FTX?? https://t.co/fU0Hk0uOGr pic.twitter.com/xSz5zP1QrH
At press time, the cause of the collapse remains unclear. Despite mounting pressure, the Mantra team has yet to release a full explanation. Cointelegraph reportedly reached out for comment but has not received a response.
Mantra co-founder JP Mullin took to social media to assure users that the team is still active and has not liquidated its token holdings. “We are here and not going anywhere,” Mullin wrote, sharing a blockchain address verifying the custody of team-held OM tokens. The Mantra team attributed the price implosion to “reckless liquidations,” distancing themselves from allegations of internal wrongdoing.
MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025
The timing of this collapse is particularly alarming, coming just months after Mantra signed a $1 billion tokenization deal with Middle Eastern conglomerate DAMAC and received regulatory approval from Dubai’s VARA to operate as a digital asset service provider.
This latest incident follows a wave of security and trust-related crises in crypto, including the $1.4 billion Bybit hack and the collapse of the Libra memecoin.
Also Read: Bloomberg: Betting Against Ethereum Is 2025’s Most Profitable ETF Strategy
With confidence shaken, investors are closely watching whether OM can recover or if this marks yet another high-profile casualty in crypto’s volatile landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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