The Mantra Finance Team was in the storm after the collapse of the Token Mantra (OM) and fell by more than 90% on April 14th.
Mantra CEO and founder John Patrick Mullin continues his explanation through social networks, but data On-chain They show it There were serious anomalies in the distribution of tokens, and there were suspicious movements before they collapsed..
As reported by Cryptonotics, the OM price, a network token dedicated to digital assets, collapsed from $6.30 to $0.50 in a matter of hours.
The price decline in OM caused a liquidation of over $80 million, indicating that most leveraged trailers have taken long positions (length), bet on climbing the token.
Leverage is a strategy that can be operated with funds provided to increase market exposure. As this occurs, as in this case, the losses will be higher and you can force the payment of the position.
When this memo was published, om $ over 0.70 quotesan increase of 30% over the past 24 hours.
This price increase raises doubts whether OM can be rebounded.
It should be noted that, in principle, this recovery is due to the fact that John Patrick Marine shared a plan through X’s account to burn the 300 million OM tokens allocated to the network team to restore community trust.
This situation continues with another issue linked to the possibility of price recovery. Is it enough for the community to regain confidence in the project?
CNBC analyst Ran Neuner believes the announcement is an “error” because “eliminating incentives may seem like a good gesture, but in the long run it will harm the team’s motivations.” He added: “My suggestion is that they simply grow.”
Mullin’s publication received some comments on the same line as Neuner, but many users added that they don’t need a promise, but want to know the truth behind the collapse of OM.
And what is the truth? We don’t know yet, but these data could shed light on this issue.
“The collapse was caused by forced and reckless closures initiated by a central exchange of OM accounts,” CEO Mantra said in his first statement.
But Exchange OKX CEO Star Xu said it was “a great scandal for the entire cryptocurrency industry,” and the data warned the data. On-chain They show that there was a large token deposit on the exchange platform before the collapse.
These actions suggest that There was a calculated strategy in between insider (People with privileged information).
According to data from LookonChain Explorer, Team Wallet deposited 3.9 million tokens with OKX just hours before OM collapse.
It is also suspected that Mantra had a huge discount on OTC sales (off-the-counter). The OTC’s work is a direct agreement between parties. When prices fell 50%, many of these purchases entered losses and unleashed the panic sales wave.
A few days ago crash17 wallets collectively deposited 43.6 million OM tokens (approximately $227 million) in exchange.
The fact that so many wallets have moved many tokens to exchange suggests that OM owners were trying to sell or liquidate their positions before the asset value fell.
On his part, Zachxbt, a paradigm member of cryptocurrency investment firm, showed that Leaf Finance founder Denko Mancheski and X user Fukugo Ryoshu had requested mass loans for Token OM time before the collapse.
This suggests that Denko and Ryoshu could not sell the token directly, but instead use the OM token as collateral to obtain loans with Stablcoins or Fíat Money. In this way, they would have achieved liquidity while maintaining their position.
If they had suspected privileged information or OM prices decline, this strategy could have exploited the situation without directly affecting prices and avoided large-scale sales that could accelerate the token collapse.
At this time, neither Denko nor Ryoshu have publicly responded to these accusations.
Mantra red flag
If Mullin wants to restore the reliability of the project, then you need to clarify some issues with OM Tocononomics.
The Mantra Finance Project has been criticized several times for manipulating the price of token OM. If you want to control more than 90% of supply It uses its influence to manipulate governance proposals such as changes in talknomics.
An analyst known as Nighteye Gems shared a report in March entitled “Mantra (OM): A Barge Red Flag?” The report reported that the team continued to delay the launch of Airdrops and changed schedules to multiple opportunities that have created distrust in the community.
He further warned: “In 2024, the OM’s maximum supply was 1,000 million people, and the project was working very well at that point. But six months ago, they added 10 million tokens that constitute the first step in mantra scams. Nothing has been said about the mantra team due to the exaggerated ads of retail sales.
In this regard, the analysts at Token Dispatch recalled that Marine had confirmed it. This is a “fictional token” used for inter-chain monitoringclaims that over 90% of OMs have been “dispersed.”
“This extreme concentration of offers has created a dangerously reduced market that can cause even moderate sales pressures to cause catastrophic price movements,” they explained.
They also showed that the change in talk gnomes implemented in October 2024 was “worried.” At the time, it was reported that the total supply of tokens had been 1,777,777,777 oms from 888,8888, to 1,777,777, but implemented a transition to a supply model that was restricted without restrictions at an early annual inflation rate of 8%.
A member of the project argued that “the design of an inflation conname without restrictions would help attract the real world asset project (RWA) to build a mantra chain.
It may have worked out at first, but the argument that an unlimited inflation model attracts RWA projects is a mistake in the long run. An unlimited, growing supply reduces the stability and predictability of the token. Dissuade investors and serious projects.
Finally, the Token Dispatch Specialist emphasized, “The most obvious aspect of this fall is the contrast between the positioning of the mantra market and the reality on the network.”
According to data from Defillama, Mantra TVL was $4.2 million before its collapse. This reflects the adoption and actual use of the platform is much lower than market capitalization suggests.
Therefore, the disconnect between market perception and reality creates mistrust and question the sustainability of the project.
Possibility of price bounce
The price drop in OM caused what happened in Terra (Luna) in May 2022. This has resulted in the asset’s value collapsed by 99%, from up to $12 in just five days to just $0.000005.
It is worth noting that the fall lasted for several days, while the fall lasted for several days in OM. It collapsed sharply by 90% within a few hours.
A few weeks after the incident, the monthly price was quoted again above $2.
But the lack of confidence in the project created an uphill where the tokens shine in the market.
This is a major challenge that mantra finance is facing right now. And while Marin is trying to protect his team, the data is On-chain We have previously demonstrated multiple irregularities.
As a result, many people have Pumps and dumpsa strategy in which the price of an asset artificially expands and sells it in large quantities, causing a sudden fall that harms retail investors.
Reddit Social Networks may be the OM discussion community if the Reviva project is possible.
Most comments reflect negative tone. Perhaps it is the sense of allternative_bug2571 for the user that sums up the sense of community. He was frank.
