On April 13, OM—the native token of the Mantra protocol—saw its value vanish in hours. The price tumbled by more than 90%. Traders panicked. Liquidity drained fast. And once again, crypto’s volatility left investors speechless.
Mantra had been building momentum. With new partnerships and licenses, confidence was high. But that optimism collapsed in a flash. The token’s sudden decline became one of the most shocking market events in recent months.
This article unpacks the price meltdown. It covers the root causes, community response, and the potential path forward.
A Drop Few Saw Coming
From: Coin Gecko
OM opened the day trading above $6. But hours later, it crashed below $0.50. That drop erased billions in value. The fall happened fast, with many caught off guard. Investors rushed to cut losses. Markets across the board felt the impact. The abrupt move stunned both long-time holders and newcomers.
Within a few minutes, the token had gone from bullish to broken.
Rumors Spark Panic
As prices collapsed, rumors spread rapidly. Some accused the project of pulling the rug. Others suspected internal manipulation. There were even claims of coordinated selling. Without a clear cause, panic took hold. Social media erupted. Some traders shared screenshots of massive dumps. Others speculated about large-scale sell-offs and leveraged liquidations.
In the absence of answers, fear filled the gap.
Founders Address the Fallout
To calm the chaos, Mantra’s co-founder JP Mullin stepped in. He denied any foul play. According to him, the collapse wasn’t intentional. Instead, it resulted from heavy liquidations and cascading orders. He shared screenshots of team wallets. He confirmed that their channels remained active. And he reassured users that development would continue.
The team claimed they were blindsided too. But many weren’t convinced.
Price Attempts to Recover
After bottoming out, OM managed to climb back above $1. The bounce was brief but gave some hope. Bottom fishers saw opportunity. Some users doubled down. Still, sentiment remained shaky. The recovery was fragile. Confidence had taken a massive hit. It was clear that this wasn’t just a dip. It was a credibility crisis.
Mantra’s Rapid Rise
Mantra wasn’t just another altcoin. It had gained attention by landing a $1 billion asset tokenization deal with investment group DAMAC. This included plans to digitize physical assets like real estate and data infrastructure. The project had also secured regulatory approval. Its license from Dubai’s VARA gave it legal standing to operate as a crypto service provider in the UAE. That made the token’s collapse even more surprising. Big deals. Big license. And now—big crash.
How Leverage Played a Role
Many now believe over-leveraged positions helped accelerate the drop. In crypto, when a price falls below a certain point, leveraged trades auto-liquidate. That adds pressure to the market and can spark a chain reaction. One large liquidation often leads to more. A domino effect kicks in. With every margin call, the selling accelerates. This appears to be what unfolded with OM. Once a few major positions got wiped out, the rest followed. Fast.
Frustrated Investors Speak Out
Not everyone accepted the liquidation narrative. Some demanded greater transparency. Others questioned the team’s risk management. A few even hinted at legal action. Angry holders flooded chats. Some called for a freeze on token movement. Others wanted more visibility into treasury funds and token allocations. The mood was clear: frustration, not forgiveness.
Contagion in the Market
The OM crash rippled across other tokens. Even unrelated assets felt the drag. Several altcoins saw sudden dips. Traders were on edge. Platforms paused withdrawals for OM. Some exchanges reviewed listing conditions. Everyone wanted to avoid being caught in the next collapse. Panic, once started, rarely stays contained.
What Lies Ahead
Mantra now stands at a pivotal point. It can rebuild—or fade. Investors will need more than words. They’ll want transparency, accountability, and a clear recovery plan. The roadmap still exists. But trust needs to be rebuilt from the ground up. The team must take responsibility. They must deliver real progress. Because in crypto, narratives shift quickly—but not without effort.
Takeaways for the Crypto Space
The OM crash offers important lessons. High leverage remains a silent risk. Community trust can vanish in a moment. And even compliant, well-funded projects are not immune to failure. Crypto remains high-stakes. That’s both its charm and its danger. But projects that prioritize transparency and user protection stand a better chance. Mantra will need to prove that it’s one of them.
Can OM Regain Its Value?
Nothing is impossible. But a full recovery won’t come easy. Some tokens bounce back. Others fade away. It depends on how the team responds. Mantra has infrastructure. It has partnerships. And it still has a loyal core of users. But the broader community will expect answers, not just ambition. Whether OM returns to former highs remains to be seen. But if it does, it will take more than luck.
Wrapping Up
OM’s 90% collapse sent shockwaves through the market. The speed, scale, and timing caught many off guard. It served as a fresh reminder of how volatile crypto still is. For now, OM’s future hangs in the balance. The team says they’re here to stay. But talk is cheap in crypto. Only action will matter. If Mantra wants to bounce back, the work starts now.
Disclaimer: This content is for general informational purposes only and should not be considered financial or investment advice. Always do your own research and consult with a qualified financial advisor before making investment decisions.