The Mantra team recently addressed the crypto community concerning the crash in the Mantra (OM) token price by over 80% in the last 24 hours. Despite their reassurance that the token is fundamentally strong, some community members are still concerned that this could have been a rug pull orchestrated by the team, who control a significant portion of the token’s total supply.
In response to the token crash, the Mantra team assured the community that the project remains strong and blamed the crash on “reckless liquidations” rather than any internal issues within the project itself. They also mentioned that they were investigating the crash and would provide more information soon to clarify what happened.
It was revealed by the project’s co-founder, John Patrick Mullin, that a massive forced liquidation from a large OM investor on a Centralized Exchange (CEX) was a significant factor in the crash. However, the specific exchange involved was not disclosed. Mullin also clarified that the team did not delete the Telegram channel and assured community members that the team’s tokens are still intact and provided a wallet address for verification.
Despite the team’s efforts to address the concerns of the community, the Mantra price has still plummeted by over 80% in the past 24 hours, dropping from $6.3 to $0.4. The team’s statement helped the token reclaim the $1 price level but some community members remain skeptical, citing the team’s substantial control over the token’s supply. Crypto commentator Sjuul compared the OM token crash to the LUNA of this cycle.
The crash of the Mantra token also coincides with a broader downtrend in the crypto market following US President Donald Trump’s recent statement debunking reports of an exemption from tariffs on China and other countries. This development comes just a day after the market rebounded following reports that computers, phones, and chips were exempted from the tariffs.
In conclusion, the Mantra team’s response to the token crash, while reassuring to some members of the community, has not alleviated all concerns regarding the crash. The team continues to investigate the forced liquidation that contributed to the crash and aims to provide more information soon. The broader crypto market downtrend following Trump’s statement adds to the complexities of the current market conditions, causing uncertainty among investors and traders. It remains to be seen how the Mantra token price will recover in the coming days and how the team’s handling of the situation will impact investor confidence in the project.
