Binance, one of the largest cryptocurrency exchanges, has recently shed light on the drastic price crash of Mantra’s token OM, which plummeted by over 90% in just one day. According to an update by the exchange, the price crash was a result of massive cross-exchange liquidations. Additionally, on-chain trackers have also pointed out significant token dumps into exchanges, further contributing to the price decline. At the time of reporting, the OM token was trading at $0.7162, marking a nearly 90% intraday drop.
In response to the price crash, Binance issued a statement on Monday, confirming that they are aware of the situation surrounding Mantra. The exchange attributed the crash to cross-exchange liquidations and highlighted the various risk control measures they have implemented since October to protect users trading OM tokens. Furthermore, Binance has been issuing warnings to users about changes in tokenomics since January of this year. The exchange also noted the increase in Mantra’s token supply since the beginning of the year as a concerning factor in the price movements.
The reasons behind the drastic fall in Mantra’s price include massive selling pressure, liquidations, and allegations of rug-pulling on the project. Tracker Lookonchain revealed that 17 wallets deposited $227 million worth of tokens into exchanges shortly before the price crash, representing around 4.5% of the circulating supply. This influx of tokens led to liquidations totaling $66.97 million in the past 12 hours, contributing to the downward spiral of the price. Coupled with Binance’s update on the situation, these factors have created a bearish sentiment among investors.
Amidst the price crash, a crypto trader known as JB on X revealed a staggering loss of $3.3 million, with his initial investment of $3.5 million now reduced to just $200,000. The trader expressed disappointment in the current state of affairs, particularly since his intention was to support the future of RWAs. Reports also indicated that crypto traders collectively lost nearly $400 million as a result of the OM price crash. With market sentiments turning increasingly bearish and Binance’s update confirming the negative trend, investors are advised to proceed with caution when trading Mantra’s token.
