{"id":21946,"date":"2025-04-14T10:02:12","date_gmt":"2025-04-14T10:02:12","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21946"},"modified":"2025-04-14T10:02:12","modified_gmt":"2025-04-14T10:02:12","slug":"mantra-bounces-200-after-om-price-crash-but-poses-luna-like-big-scandal-risk","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21946","title":{"rendered":"Mantra bounces 200% after OM price crash but poses LUNA-like ‘big scandal’ risk"},"content":{"rendered":"
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\"Mantra<\/p>\n

Mantra\u2019s OM (OM<\/a>) token staged a sharp rebound after plunging 90% over the weekend, following an active response from the project\u2019s team addressing allegations of a rug pull scam.<\/p>\n

OM bounces 200% as co-founder addresses concerns<\/h2>\n

As of April 14, OM was trading for as high as $1.10, almost 200% higher when compared to its post-crash low of $0.37 a day prior. <\/p>\n

\"Mantra
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OM\/USDT daily price chart. Source: TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n

The rebound came after Mantra addressed mounting rug-pull allegations. <\/p>\n

Co-founder JP Mullin reassured the community that the project remains active, pointing to the official Telegram group being \u201cstill online.\u201d<\/p>\n

\u201cWe are here and not going anywhere,\u201d Mullin wrote, also sharing a verification address to prove the team’s OM token holdings. He attributed<\/a> the OM\u2019s crash to \u201creckless forced closures initiated by centralized exchanges.\u201d<\/p>\n

\"Mantra
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Source:<\/em> JP Mullin <\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

The assurance calmed the OM token sell-off that had obliterated over $5 billion in market capitalization and liquidated<\/a> $75.88 million worth of futures positions in a day.<\/p>\n

Numerous online commentators claimed the Mantra team, reportedly controlling 90% of the token supply, orchestrated the sell-off due to\u00a0suspicious OM transfers<\/a>\u00a0to centralized exchanges right before the crash.<\/p>\n

\"Mantra
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Source: <\/em>AltcoinGordon<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Analyst Ed further alleged that the Mantra team used their OM holdings as collateral to secure high-risk loans on a centralized exchange. <\/p>\n

He noted that a sudden change in the platform\u2019s loan risk parameters triggered a margin call, contributing to the token\u2019s sharp decline. <\/p>\n

\"Mantra
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Source: <\/em>Ed<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Exchanges adjust loan risk parameters to manage market volatility and protect themselves from potential insolvency due to falling collateral values. Centralized exchanges like OKX have changed their parameters after Mantra\u2019s tokenomics update in October 2024.<\/p>\n

Notably, Mantra doubled<\/a> the total supply of OM tokens from 888,888,888 to 1,777,777,777 in the said month. It further transitioned from a capped to an uncapped, inflationary model with an initial 8% annual inflation rate.<\/p>\n

\"Mantra
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Source: <\/em>Wu Blockchain<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

OKX CEO Star Xu called<\/a> Mantra a \u201cbig scandal,\u201d adding that it would release relevant reports regarding its crash in the coming days.<\/p>\n

OM bounce might resemble LUNA\u2019s bull trap <\/h2>\n

OM\u2019s 200% rebound from its $0.37 low may look impressive, but its structure closely resembles the classic bull trap pattern seen in Terra\u2019s LUNA debacle<\/a> in May 2022.<\/p>\n

OM\u2019s price has crashed below the 50-week exponential moving average (50-week EMA; the red wave) support near $3.25 and is now testing resistance at the 200-week EMA (the blue wave) at around $1.08.<\/p>\n

\"Mantra
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OM\/USDT weekly price chart. Source: TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n

Meanwhile, OM\u2019s weekly relative strength index (RSI<\/a>) has dropped to 33.31, signaling weakening momentum and increasing the risk of another breakdown.<\/p>\n

Related: <\/strong><\/em>What is a rug pull in crypto and 6 ways to spot it?<\/strong><\/em><\/a><\/p>\n

This setup strongly mirrors LUNA\u2019s post-crash behavior. After its sharp decline in May 2022, the price staged a brief recovery but failed to reclaim its 50-week and 200-week moving averages, triggering a deeper and more prolonged downtrend. <\/p>\n

\"Mantra
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LUNA\/USD weekly price chart. Source: TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n

Just like LUNA, OM now faces mounting skepticism despite the temporary bounce, with chartist AmiCatCrypto<\/a> saying that the Mantra token can plunge 90% within a day after rallying for 100 days.<\/p>\n

\u201cIf you ask me if bull market is over. Short answer. YES,\u201d she wrote, adding: <\/p>\n

\u201cAny gains from this point is considered bounces.\u201d<\/p><\/blockquote>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n