The OM cryptocurrency project experienced a dramatic 90% price crash, primarily driven by early investor behavior and speculative trading. The sudden decline wiped out billions in market capitalization, raising concerns about market stability and investor protection.
The crash was triggered when a wallet linked to the MANTRA team moved 3.9 million OM tokens to the OKX exchange. Given that the team controls nearly 90% of all OM tokens, this transaction raised fears of insider activity and market manipulation. The resulting panic led to a rapid sell-off, exacerbating the price decline.
Investor confidence in OM had already been weakened by previous allegations of market manipulation, secret tokenomic changes, and controversial airdrop handling. These factors contributed to growing distrust within the community, making the token more vulnerable to sudden price swings.
Over-the-counter deals
Adding to the uncertainty, reports surfaced that private over-the-counter (OTC) deals had been conducted at significant discounts—some as high as 50% off. When the price started dropping, even these private investors rushed to sell, triggering a chain reaction that accelerated the crash.
Following the collapse, the MANTRA team issued a statement denying insider involvement and attributing the crash to reckless liquidations. Co-founder John Patrick Mullin reassured investors that the project remains operational and is investigating the incident. However, skepticism remains, with some analysts comparing the situation to the infamous Terra LUNA crash of 2022.
Shogun Lin
