In-depth, beginner-friendly guides and strategic insights on Web3 technologies, crypto airdrops, and decentralized finance to empower the next generation of digital investors.
In-depth, beginner-friendly guides and strategic insights on Web3 technologies, crypto airdrops, and decentralized finance to empower the next generation of digital investors.
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On April 13, 2025, the crypto world witnessed a shocking event — the Mantra ($OM) token crashed over 90% within hours, wiping out $5.4 billion in market cap. What followed was a whirlwind of confusion, accusations, and damage control. Was this a classic rugpull, or just another case of crypto volatility amplified by centralized exchange (CEX) mechanics?
In this blog, we’ll break down what happened, the response from the Mantra team, and what this means for the project moving forward.
What Happened?
$OM was riding high, trading above $6, when it suddenly plummeted to under $0.50. Liquidations across major exchanges were triggered, totaling over $72 million. In mere hours, a top-performing token became one of the most catastrophic stories of 2025.
This sparked immediate concerns across the community:
Was the Mantra team behind this? Did insiders dump? Was this an exit scam?
Mantra Team Responds:
John Patrick Mullin, co-founder of Mantra, addressed the situation directly. According to him, the crash was triggered by "reckless forced closures" by centralized exchanges during low-liquidity trading hours.
> “We did not dump on the community. No rug, no insider dump. This was a structural failure, not a betrayal,” Mullin stated.
He emphasized that Mantra’s team had zero involvement in any suspicious selloffs, and blamed the sudden liquidations for the cascade effect.
The Suspicious On-Chain Activity
Despite the team’s statement, on-chain data told a different story — or at least raised serious questions. Over 43.6 million $OM tokens (worth ~$227 million) were transferred to exchanges by 17 wallets shortly before the crash.
These wallets were initially thought to be linked to Laser Digital, a strategic investor in Mantra. However, Laser and the Mantra team both denied any connection. Mullin pointed out that the wallet tagging may have been incorrect and stressed the importance of not jumping to conclusions.
The Recovery Plan:
In an attempt to restore trust, Mantra is now rolling out a recovery initiative:
$109 million Buyback Program
An aggressive effort to repurchase $OM tokens and stabilize the price.
Transparency Measures
Publishing wallet holdings and increasing public disclosures to calm investor fears.
Community Reaction: Still Divided
While some in the community are giving the team the benefit of the doubt, others remain skeptical. Critics argue that a highly concentrated token supply, paired with poor risk controls, laid the groundwork for disaster.
Regardless of intent, the collapse of $OM has become a cautionary tale about the dangers of over-reliance on CEXs, lack of transparency, and the need for decentralized liquidity protections.
Final Thoughts:
Whether or not this was a rugpull, the damage has been done. Mantra has a long road ahead to rebuild trust and regain momentum. But with a recovery plan in place and more transparency promised, it remains to be seen if $OM can bounce back — or if it’s destined to be remembered as one of 2025’s biggest failures.
What's your take? Do you think this was a rugpull, or market panic? And who is to blame??
Stay tuned for more breakdowns like this.
Follow for updates on Mantra and other key crypto narratives. On X(Twitter) @_webb3
On April 13, 2025, the crypto world witnessed a shocking event — the Mantra ($OM) token crashed over 90% within hours, wiping out $5.4 billion in market cap. What followed was a whirlwind of confusion, accusations, and damage control. Was this a classic rugpull, or just another case of crypto volatility amplified by centralized exchange (CEX) mechanics?
In this blog, we’ll break down what happened, the response from the Mantra team, and what this means for the project moving forward.
What Happened?
$OM was riding high, trading above $6, when it suddenly plummeted to under $0.50. Liquidations across major exchanges were triggered, totaling over $72 million. In mere hours, a top-performing token became one of the most catastrophic stories of 2025.
This sparked immediate concerns across the community:
Was the Mantra team behind this? Did insiders dump? Was this an exit scam?
Mantra Team Responds:
John Patrick Mullin, co-founder of Mantra, addressed the situation directly. According to him, the crash was triggered by "reckless forced closures" by centralized exchanges during low-liquidity trading hours.
> “We did not dump on the community. No rug, no insider dump. This was a structural failure, not a betrayal,” Mullin stated.
He emphasized that Mantra’s team had zero involvement in any suspicious selloffs, and blamed the sudden liquidations for the cascade effect.
The Suspicious On-Chain Activity
Despite the team’s statement, on-chain data told a different story — or at least raised serious questions. Over 43.6 million $OM tokens (worth ~$227 million) were transferred to exchanges by 17 wallets shortly before the crash.
These wallets were initially thought to be linked to Laser Digital, a strategic investor in Mantra. However, Laser and the Mantra team both denied any connection. Mullin pointed out that the wallet tagging may have been incorrect and stressed the importance of not jumping to conclusions.
The Recovery Plan:
In an attempt to restore trust, Mantra is now rolling out a recovery initiative:
$109 million Buyback Program
An aggressive effort to repurchase $OM tokens and stabilize the price.
Transparency Measures
Publishing wallet holdings and increasing public disclosures to calm investor fears.
Community Reaction: Still Divided
While some in the community are giving the team the benefit of the doubt, others remain skeptical. Critics argue that a highly concentrated token supply, paired with poor risk controls, laid the groundwork for disaster.
Regardless of intent, the collapse of $OM has become a cautionary tale about the dangers of over-reliance on CEXs, lack of transparency, and the need for decentralized liquidity protections.
Final Thoughts:
Whether or not this was a rugpull, the damage has been done. Mantra has a long road ahead to rebuild trust and regain momentum. But with a recovery plan in place and more transparency promised, it remains to be seen if $OM can bounce back — or if it’s destined to be remembered as one of 2025’s biggest failures.
What's your take? Do you think this was a rugpull, or market panic? And who is to blame??
Stay tuned for more breakdowns like this.
Follow for updates on Mantra and other key crypto narratives. On X(Twitter) @_webb3
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