Mantra Crypto Market Cap Wiped Out by Billions
The OM token, native to the Mantra blockchain, collapsed by over 90 percent on Sunday. Within 24 hours, OM’s value dropped from $6.30 to below $0.50. The collapse wiped out more than $5.5 billion in market capitalisation. Mantra’s native crypto had recently gained popularity due to its ties to real-world asset tokenisation.
Figure 1: The OM Token collapsed by over 90%
Forced Liquidation Triggered Market Panic
According to Mantra co-founder John Patrick Mullin, the price crash stemmed from a massive forced liquidation. In a post on X, Mullin stated, “This wasn’t team selling. We’re still here. Still building. Still fixing this.” The forced liquidation reportedly came from a large OM investor. This triggered cascading sell orders across centralised exchanges.
Sherpas, OMies, and broader crypto community,
First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.
We have determined that…
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025
The liquidations led to thin order books, accelerating the token’s fall. As prices fell rapidly, traders rushed to exit positions. Telegram groups reported widespread panic among OM holders.
Public Communication Channels Go Dark
Following the collapse, Mantra’s public Telegram group went offline. This sparked fears of internal disarray among community members. Community lead Dustin McDaniel tried to calm investors with a message stating he had “no knowledge” of the crash’s cause. Shortly after, the Telegram group became inaccessible.
OM Compared to Historic Crypto Collapses
Analysts quickly drew parallels between OM’s crash and past crypto disasters. Comparisons included Terra’s LUNA collapse and the FTX exchange implosion. The speed and scale of the OM plunge raised concerns about structural weaknesses.
Tokenomics Raise Red Flags Among Analysts
Before the crash, concerns about OM’s tokenomics had already circulated among market analysts. The token carried a fully diluted valuation near $9.5 billion. However, its total value locked (TVL) stood at only $13 million.
The sharp contrast between valuation and utility drew criticism from various trading desks. OM’s valuation outpaced its real-world adoption, according to traders.
Suspicious On-Chain Activity Raises More Questions
On-chain data from days before the crash showed significant token transfers. Millions of OM tokens moved to major exchanges OKX and Binance. One wallet linked to Binance sent over $36 million in OM to OKX.
Some traders now believe the transactions could represent strategic positioning. These movements may have preceded the liquidation event. Investigators are currently analysing the timing and source of these transfers.
Figure 2: $36M in OM moved to OKX before crash sparks investigation
Legal Challenges Deepen Investor Concerns
The crash occurred as Mantra DAO faces legal scrutiny in Hong Kong. A court recently ordered six DAO members to disclose financial records. The lawsuit alleges misappropriation of DAO funds.
The legal action has sparked concerns about Mantra’s internal governance. Investors have questioned the DAO’s financial transparency and accountability.
Mantra’s Recent High-Profile Partnerships Under Threat
Just two months ago, Mantra announced major strategic milestones. These included a $1 billion tokenisation partnership with real estate giant DAMAC. The project also received a virtual asset licence from Dubai’s Virtual Assets Regulatory Authority.
These achievements positioned Mantra as a growing player in the real-world asset blockchain sector. However, Sunday’s collapse has undermined investor confidence in those plans.
Uncertainty Clouds OM’s Future Trajectory
With billions in value erased and core infrastructure offline, OM’s future remains uncertain. The Mantra team continues to issue updates promising recovery efforts. Investors await signs of stability in trading volumes and platform operations.
The crash has sparked broader discussions about project overleveraging and risk controls. Analysts recommend closer scrutiny of centralised exchange practices and token liquidity mechanisms.
Mind Of Pepe AI Agent Project Gains Momentum
While OM holders manage losses, a competing AI agent crypto project has gained attention. Mind Of Pepe (MIND) includes a scam-calling AI agent feature. The token is currently in presale and has seen early traction.
MIND aims to challenge market leader AIXBT in the AI agent crypto sector. The team recently upgraded MIND’s large language model (LLM) to enhance intelligence and market analysis.
The project’s developers focus on voice consistency and trading insight. Token holders are promised exclusive access to the AI agent’s alpha features.
Early Supporters Targeted with Presale Incentives
MIND token remains available at early-bird prices ahead of its market listing. The developers believe this is the lowest entry point for investors. Market momentum is expected to increase once the token goes public.
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Demand may grow as more traders observe the success of the MIND community. The project positions itself as a major AI agent contender for 2025.
AI Agent Sector Eyes Post-OM Crash Attention
Mind Of Pepe’s rise comes amid declining interest in earlier AI breakout tokens. These include AI16Z, which has seen reduced developer activity in recent months.
MIND’s team continues refining its agent infrastructure to boost holder returns. The developers plan further releases to expand its functionality.
Investors Weigh Caution Against Opportunity
The OM collapse serves as a reminder of volatility in the crypto space. Traders now watch for signs of resilience or further fallout.
Meanwhile, early-stage projects like MIND attract attention with clear utility propositions. Market participants continue balancing risk with potential return across emerging tokens.
