{"id":22543,"date":"2025-04-17T12:16:41","date_gmt":"2025-04-17T12:16:41","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=22543"},"modified":"2025-04-17T12:16:41","modified_gmt":"2025-04-17T12:16:41","slug":"mantra-om-token-crash-exposes-critical-liquidity-issues-in-crypto","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=22543","title":{"rendered":"Mantra OM token crash exposes \u2018critical\u2019 liquidity issues in crypto"},"content":{"rendered":"<div>\n<p style=\"float:right; margin:0 0 10px 15px; width:240px;\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjQzODMtOWQ2OS03ZGEwLTkwNmMtMGE5NDU0ZGQ2NWI5.jpg\"><\/p>\n<\/p>\n<p style=\"float:right; margin:0 0 10px 15px; width:240px;\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjQzODMtOWQ2OS03ZGEwLTkwNmMtMGE5NDU0ZGQ2NWI5.jpg\" alt=\"Mantra OM token crash exposes \u2018critical\u2019 liquidity issues in crypto\"><\/p>\n<p>Mantra\u2019s recent token collapse highlights an issue within the crypto industry of fluctuating weekend liquidity levels creating additional downside volatility, which may have exacerbated the token\u2019s crash.<\/p>\n<p>The Mantra (<a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/mantra-price-index\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">OM<\/a>) token\u2019s price <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/mantra-price-collapses-by-over-90\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">collapsed by over 90%<\/a> on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations among disillusioned investors, Cointelegraph reported.<\/p>\n<p>While blockchain analysts are still piecing together the reasons behind the OM collapse, the event highlights some crucial issues for the crypto industry, according to Gracy Chen, CEO of the cryptocurrency exchange Bitget.<\/p>\n<p>\u201cThe OM token crash exposed several critical issues that we are seeing not just in OM, but also as an industry,\u201d Chen said during Cointelegraph\u2019s Chainreaction daily X <a data-ct-non-breakable=\"null\" href=\"https:\/\/x.com\/Cointelegraph\/status\/1912086341577322744\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">show<\/a>, adding:<\/p>\n<blockquote><p>\u201cWhen it\u2019s a token that\u2019s too concentrated, the wealth concentration and the very opaque governance, together with sudden exchange inflows and outflows, [&#8230;] combined with the forced liquidation during very low liquidity hours in our industry, created the big drop off.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83c\udf99\ufe0f CEXs hit with outages as AWS runs into trouble. The question is, do we need more decentralization? <\/p>\n<p>Today, <a href=\"https:\/\/twitter.com\/rkbaggs?ref_src=twsrc%5Etfw\">@RKBaggs<\/a> and <a href=\"https:\/\/twitter.com\/ZVardai?ref_src=twsrc%5Etfw\">@ZVardai<\/a> are joined by <a href=\"https:\/\/twitter.com\/GracyBitget?ref_src=twsrc%5Etfw\">@GracyBitget<\/a>, CEO of <a href=\"https:\/\/twitter.com\/bitgetglobal?ref_src=twsrc%5Etfw\">@Bitgetglobal<\/a> on <a href=\"https:\/\/twitter.com\/hashtag\/CHAINREACTION?src=hash&amp;ref_src=twsrc%5Etfw\">#CHAINREACTION<\/a> to unpack the problem!<a href=\"https:\/\/t.co\/OPoyu1IORC\">https:\/\/t.co\/OPoyu1IORC<\/a><\/p>\n<p>\u2014 Cointelegraph (@Cointelegraph) <a href=\"https:\/\/twitter.com\/Cointelegraph\/status\/1912086341577322744?ref_src=twsrc%5Etfw\">April 15, 2025<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><em><strong>Related: <\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/google-crypto-ads-mica-europe-compliance-policy\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em><strong>Google to enforce MiCA rules for crypto ads in Europe starting April 23<\/strong><\/em><\/a><\/p>\n<p>At least two wallets linked to Mantra investor Laser Digital were among 17 wallets that moved a combined 43.6 million OM tokens \u2014 worth about $227 million at the time \u2014 to exchanges before the crash, the blockchain analytics platform Lookonchain\u00a0<a data-ct-non-breakable=\"null\" href=\"https:\/\/x.com\/lookonchain\/status\/1911584133652074662\" rel=\"null\" target=\"null\" text=\"null\" title=\"https:\/\/x.com\/lookonchain\/status\/1911584133652074662\">reported<\/a>\u00a0on April 13, citing Arkham Intelligence data.<\/p>\n<p>However, Mantra CEO <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/mantra-investors-dumped-om-before-90-percent-crash\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">John Mullin denied<\/a> the allegations related to large-scale token transfers from Mantra investors, Cointelegraph reported on April 14.<\/p>\n<p><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/mantra-post-crash-statement-key-questions-unanswered\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">Mantra released<\/a> a post-crash statement on April 16, <a data-ct-non-breakable=\"null\" href=\"https:\/\/www.mantrachain.io\/resources\/announcements\/statement-of-events-13-april-2025\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">reiterating<\/a> that the OM crash didn\u2019t involve <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/mantra-investors-dumped-om-before-90-percent-crash\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">token sales by the project itself<\/a> and that the Mantra team continues investigating the incident. The report did not explain the rapid movement of OM tokens to exchanges and subsequent liquidations.<\/p>\n<p><em><strong>Related: <\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/ufc-dana-white-vechain-adviser-drive-blockchain-adoption\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em><strong>UFC boss Dana White becomes VeChain adviser to push blockchain mainstream<\/strong><\/em><\/a><\/p>\n<h2>Exchange movements point to strong \u201cinsider dumping\u201d signal<\/h2>\n<p>While the exact reason behind the collapse remains unclear, Mullin attributed the crash to \u201cmassive forced liquidations\u201d on centralized exchanges during low-liquidity hours on Sunday.<\/p>\n<p>Mullin <a data-ct-non-breakable=\"null\" href=\"https:\/\/x.com\/torvaman_\/status\/1911580113268810108\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">told<\/a> an X user that the Mantra team believes one exchange \u201cin particular\u201d is to blame, but said the team was still \u201cfiguring out the details,\u201d and specified that the exchange in question is not Binance.\u00a0<\/p>\n<p>\u201cI think OKX was the main exchange being accused of so-called liquidations,\u201d said Chen, adding that the large transfers to multiple exchanges raised significant red flags. She added:<\/p>\n<blockquote><p>\u201cI did look at the onchain data, which revealed that there were millions of OM tokens moved to centralized exchanges. That\u2019s a very strong signal of insider dumping.\u201d<\/p><\/blockquote>\n<p>Weekend liquidity issues have impacted even major cryptocurrencies like Bitcoin (<a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/bitcoin-price\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">BTC<\/a>).<\/p>\n<p>The lack of weekend trading volume, combined with <a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-24-7-liquidity-double-edged-sword-marketturmoil\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">Bitcoin\u2019s 24\/7 liquidity<\/a>, resulted in Bitcoin\u2019s correction below $75,000 on Sunday, April 6, Cointelegraph reported.<\/p>\n<p>The April 6 correction may have occurred due to Bitcoin being the only large tradable asset over the weekend available for de-risking amid global trade war concerns, Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock, told Cointelegraph.<\/p>\n<p><iframe width=\"100%\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/KQZhVT77xKw?start=\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen loading=\"lazy\"><\/iframe><\/p>\n<p><em><strong>Magazine: <\/strong><\/em><a data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/magazine\/bitcoin-mine-soldiers-crypto-pickup-line-asia-express\/\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\"><em><strong>Illegal arcade disguised as \u2026 a fake Bitcoin mine? Soldier scams in China: Asia Express<\/strong><\/em><\/a><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\" label=\"Subscription Form: DeFi Newsletter\"><\/template>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mantra\u2019s recent token collapse highlights an issue within the crypto industry of fluctuating weekend liquidity levels creating additional downside volatility, which may have exacerbated the token\u2019s crash. The Mantra (OM) token\u2019s price collapsed by over 90% on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations among disillusioned investors, Cointelegraph reported. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-22543","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22543"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22543\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}