Mantra (OM), a network token dedicated to tokenizing digital assets, suffered from a collapse that questioned the sustainability and reliability of the project.
Over the past 24 hours, OM prices have gone from $6.30 to $0.50. Represents 90% drop.
This OM price drop was caused More than $80 million liquidationaccording to Coinglass data.
Most traders were taking leverage positions length (Long position), a strategy to bet on the rise of assets. However, the sudden collapse of tokens surprised the market and forced the massive liquidation of these operations.
As explained in the Cryptootic Educational section, Cryptopedia, trading leverage is a strategy that allows investors to use funds provided to increase their exposure to the market.
This tool allows traders to bet that the price of their digital assets will rise (longer position) or fall (short position).
If the market moves favorably, they can make a significant profit, but if the price moves against them, The losses can be largeif you don’t have the funds needed to maintain it, it will lead to a position resolution.
In this context, Mantra Finance co-founder John Patrick Marin, through his personal account of X’s price movement, said it was the result of “a reckless forced closure initiated by a central exchange of OM accounts.”
“The moment and depth of the collapse suggests that a very sudden closure of the account location without adequate warning or warning has begun,” he added.
In this regard, Star Xu, the founder of OKX, also answered Mullin: They prepare all the corresponding reports to determine what happened.
“This is a great scandal for the entire cryptocurrency industry. All unlock and chain deposit data are publicly available, allowing you to investigate the guarantee and liquidation data of the main exchange platform,” he said.
Far from bringing peace of mind or clarifying the situation, many users responded with criticism and questions about the lack of clarity and the possibility of responsibility behind the mantra.
A user at X @follis_ said, “Why did these closures begin? And what position are the several closures that out of 25 projects remove $5 billion from their market capitalization?”
Regarding that part, another user @ssurmas said:
It’s important to point it out Mantra’s team was already facing accusations In control, there is a large portion of the circular supply of tokens. This can be interpreted as an attempt to manipulate prices.
In the midst of the news-generating fuss, Insomniac, a member of Castle Labs, a data analytics and research firm in the chain, warned that the main cause was the recent multi-million dollar move in token OMs to the OKX and Binance Exchange platforms.
The wallet received around 36 million OM tokens from the Binance direction on March 21, then transferred to OKX to about 4.3 million tokens in eight transactions on Saturday.
This pattern was a sign they could have sold the token, which caused a dramatic drop in OM’s quote.
Three wallets were initially pointed out as the causes of the exercise, but GlassNode Report, Data Analytics Company On-chainoffering a different vision.
According to their data, the increase in active addresses – reached a maximum of 574 – and peak of 1,400 transfers in just 10 minutes It suggests that the OM settlement was a rapid and generalized responsewith the participation of a wider market actor.
As Cryptootics reports, Mantra has announced its relationship with Dubai real estate giant Damac Group with token assets worth $1,000 million.
These alliances outlined him as one of his most potential projects. In the context that the RWA industry aims to become one of the most disruptive trends of 2025.
However, this price doubts the reliability of the project in the medium term.
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