It was a weekend crypto traders won\u2019t soon forget. On April 13,\u00a0Mantra\u2019s OM token<\/b>\u2014once one of the most promising real-world asset (RWA) plays of 2024\u2014plummeted 90% within hours<\/b>, falling from over $6 to just $0.40. The sharp drop triggered a wave of liquidations, halted trading on some exchanges, and lit up Crypto Twitter with speculation about what went wrong.
\nWas it a rug pull? A hack? Or something deeper in the structure of the market itself?
\nThe Crash: A Timeline
\nJust weeks ago, Mantra was riding high. The project had secured a landmark $1 billion asset tokenization deal with Dubai\u2019s DAMAC Group and earned the\u00a0first DeFi license from Dubai\u2019s VARA<\/b>. Its OM token surged to an all-time high of $9 in February.
\nBut on April 13, that momentum came crashing down. The price freefell in a low-liquidity window, causing over\u00a0$50 million in liquidations<\/b>\u00a0and wiping out massive open interest on OM futures contracts.
\nMantra quickly issued a statement, pointing to\u00a0\u201creckless forced closures\u201d by centralized exchanges (CEXs)<\/b>\u2014which allegedly triggered a cascading chain of margin calls, stop-loss orders, and illiquid sell pressure. The team denies any insider selling or wrongdoing, claiming this was\u00a0not a rug pull<\/b>\u00a0but a liquidity event fueled by exchange risk protocols gone wrong.
\nStill, critics weren\u2019t convinced.
\nWhat Analysts Are Saying
\nIndependent analyst Ed suggests that OM tokens were being used as\u00a0collateral for high-risk loans on a centralized exchange<\/b>. As market volatility spiked, exchanges allegedly moved to protect themselves\u2014triggering margin calls and automatic liquidations.
\nOther observers claim the Mantra team may have\u00a0pledged their own tokens as collateral<\/b>, creating a feedback loop where forced selling crashed the price even further.
\nTo add fuel to the fire, OKX founder Star Xu has called the situation\u00a0\u201ca scandal to the whole crypto industry,\u201c<\/b>flagging over $220 million in token deposits to exchanges right before the crash. OKX has promised to release detailed data to investigate what happened.
\nWhat Happens Now?
\nWhile OM has since rebounded slightly\u2014briefly hitting $0.85\u2014the damage to investor trust is real. Many users are demanding greater transparency on Mantra\u2019s token management, loan activity, and relationships with centralized platforms.
\nThe project\u2019s co-founder, John Patrick Mullin, insists\u00a0\u201cMantra is fundamentally strong.\u201d<\/b>\u00a0But regaining market confidence may take more than tweets. With comparisons being made to Terra\u2019s infamous collapse, OM\u2019s future may depend on\u00a0whether Mantra can rebuild trust, improve risk protocols, and deliver on its tokenized asset vision.<\/b>
\nFor now, investors are watching closely\u2014and hoping this was a painful lesson, not a death sentence.<\/p>\n","protected":false},"excerpt":{"rendered":"
It was a weekend crypto traders won\u2019t soon forget. On April 13,\u00a0Mantra\u2019s OM token\u2014once one of the most promising real-world…<\/p>\n","protected":false},"author":6,"featured_media":513,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news"],"yoast_head":"\n