The recent drastic drop in the price of Mantra (OM) has left many in the cryptocurrency community puzzled and concerned. Mantra, previously considered a fundamentally strong token and ranked number one in Real World Assets (RWA) tokens, saw its price plummet from over $6 to as low as $0.43 in a matter of moments. This sharp decline, coupled with a sudden surge in trading volume from under $100 million to over $2 billion, has raised suspicions of foul play within the market.
The controversy surrounding the price drop began with a single transaction involving a wallet linked to the Mantra team, which sent over 3.9 million OM tokens to the exchange Okex. This transaction sparked fears among investors as it was revealed that 90% of the token supply is controlled by insiders, leading to concerns that the token’s value could be manipulated at any time. The sudden influx of tokens onto the market caused the price of OM to plummet, wiping out billions of dollars in market capitalization.
Prior to the price drop, Mantra had come under scrutiny for its handling of an airdrop and the blacklisting of over 50% of wallets without transparent reasoning. Rumors of insider OTC token deals at discounted rates further eroded investor confidence, leading to panic selling, stop-loss cascades, and leverage liquidations. The lack of transparency and questionable practices within the Mantra team have cast a shadow over the token’s future.
As the dust settles on the price crash, the question remains – what’s next for the Mantra (OM) price? Will it be able to recover from this dramatic decline, or is it destined to follow in the footsteps of other failed tokens like LUNA? The orchestrated dump of tokens and subsequent market manipulation point to a coordinated effort to deceive and rug the community. Similar collapses within the Terra ecosystem and FTX token have demonstrated the fragility of investor confidence in such situations.
As the founders and CEOs of Mantra come under scrutiny for their role in the price manipulation, it remains to be seen whether they will face consequences similar to those seen in other high-profile cases. The future of the OM token hangs in the balance, with investors left to wonder whether they can trust in the token’s value moving forward. Only time will tell if Mantra can weather this storm and regain the trust of the cryptocurrency community.