On April 13, the Mantra ecosystem took a heavy hit. Its OM token lost over 90% of its value in just a few hours. Investors were left shocked. Panic flooded the markets. And once again, the crypto world was reminded of just how fast fortunes can change.
Many had seen Mantra as a rising star. It had inked billion-dollar deals and secured high-level licenses. But all that came crashing down overnight. The drop wasn’t just severe. It was historic.
This article breaks down the collapse. It explores what triggered the fall, how the team responded, what the broader market thinks, and whether there’s a path forward.
The Crash That Shook the Charts
From: Coin Gecko
The OM token began the day trading above $6. Within hours, it was worth just $0.50. Billions vanished from the market cap. Liquidations triggered across exchanges. Traders scrambled to understand what had gone wrong. This wasn’t a slow decline. It was a freefall. Many compared it to other catastrophic events in crypto history. Some even said it felt like déjà vu.
No single explanation immediately emerged. But the community didn’t wait for one. Accusations flew. Theories multiplied. And confidence tanked.
Theories and Accusations
As prices collapsed, speculation surged. Some claimed it was a rug pull. Others blamed manipulation or insider activity. A few believed it was just a large liquidation event that spiraled out of control.
The lack of clarity only made things worse. Traders posted screenshots of massive dumps. Some pointed fingers at DeFi whales. Others questioned the project’s transparency. Meanwhile, confusion reigned. Forums exploded with posts. Social channels buzzed with fear. And many simply wanted answers.
What the Team Said
Amid the chaos, the Mantra team responded. Co-founder JP Mullin addressed the panic on social media. He insisted the team had nothing to do with the crash. According to him, this wasn’t a coordinated exit or an exploit. Instead, he blamed reckless market behavior and forced liquidations.
He shared screenshots of the team’s holdings. He emphasized that the Telegram channel remained open. And he promised to keep the community informed. That helped stabilize the bleeding—for now. But trust, once shaken, is hard to rebuild.
The Partial Rebound
After the steep fall, OM showed signs of life. It bounced back above $1. Volatility remained high, but some stability returned. Buyers entered at the lows. Some saw an opportunity. Others just hoped for a recovery.
This rebound didn’t mean the crisis was over. But it suggested the token hadn’t been abandoned. There was still activity. There was still a community. And most importantly, there was still a roadmap.
Bigger Than One Token
To understand why this collapse mattered so much, context is key. Mantra wasn’t a minor player. It had global ambitions. It had secured a $1 billion tokenization partnership with DAMAC, a major investment firm. The plan was to digitize assets like real estate and data centers on its blockchain.
In addition, Mantra had also received a license from Dubai’s Virtual Assets Regulatory Authority. That gave it the green light to offer digital asset services in the UAE. Few projects had achieved that.
All this made the crash even more shocking. This wasn’t an unknown memecoin. This was a regulated, expanding, and supposedly stable project. That’s why the collapse hit harder than most.
The Role of Leverage and Liquidations
So, what really happened behind the scenes? One likely culprit was leverage. In crypto, traders often use borrowed funds to increase gains. But when prices fall, leveraged positions can get wiped out fast. That triggers liquidations. And in a fast-moving market, these liquidations can cascade.
If one large holder’s position is liquidated, it can push prices lower. That, in turn, liquidates others. Before long, the snowball becomes an avalanche.
In Mantra’s case, this seems to be a strong possibility. Some platforms reported unusually high margin activity before the drop. Others showed large sell-offs triggered by automated systems. Whatever the exact trigger, it appears the chain reaction came fast and hard.
Community Backlash
Investors weren’t satisfied with technical explanations. Many had lost large sums. Some had been all-in on the project. They demanded more transparency. They wanted detailed answers. And most of all, they wanted accountability.
Some holders called for audits. Others wanted a halt in trading. A few even started legal discussions. The Mantra team tried to contain the damage. But trust, once broken, is difficult to repair. And in a market as emotional as crypto, reputation matters as much as tech.
Market Reactions and Ripple Effects
The broader crypto market took notice. Several altcoins dipped in sympathy. Social sentiment turned negative. Crypto Twitter flooded with hot takes.
Even unrelated projects saw higher volatility. Many traders pulled funds off platforms, fearing similar collapses. And some exchanges temporarily paused OM-related services to avoid further chaos. In short, the fallout wasn’t limited to one token. It shook confidence across the board.
What Comes Next?
Mantra now faces a crossroads. The team must choose transparency or obscurity. Engagement or silence. Recovery or slow decline.
They’ve promised a postmortem. They’ve hinted at improved risk controls. And they’ve reassured users that the long-term vision remains intact.
Still, actions speak louder than words. Investors will be watching closely. Every move, every update, and every delay will be scrutinized.
The roadmap hasn’t changed. But the credibility behind it has taken a hit. Now, the real test begins.
Lessons for the Industry
Every crypto crash teaches something. In Mantra’s case, several lessons stand out. First, heavy leverage can be dangerous—even for strong projects. Second, community communication matters more than ever. And third, no amount of regulation or partnerships can protect against poor market dynamics.
Crypto remains a high-risk space. Price swings can be brutal. But transparency, responsible risk management, and consistent communication can make a big difference. Projects that ignore these principles often fade. Those that embrace them might just recover.
Can OM Recover?
Recovery is possible—but far from guaranteed. Some projects have bounced back after worse. Others never did. OM has a few things going for it. There’s a committed team. There are major partnerships. And there’s infrastructure already in place. But there are also big challenges. Trust has been damaged. Speculators have moved on. And the narrative has shifted.
For OM to rise again, it needs more than time. It needs effort. It needs transparency. And it needs to rebuild its community from the ground up.
Final Thoughts
The 90% crash of Mantra’s OM token was a painful reminder of crypto’s volatility. It caught many off guard. It sparked anger, confusion, and fear. But it also offered lessons.
Markets are unpredictable. Emotions run high. And success in this space demands more than ambition. It demands resilience.
Only time will tell if Mantra can bounce back. But for now, the collapse stands as one of the year’s most dramatic crypto events—and a cautionary tale for projects and investors alike.
Disclaimer: This article is for informational purposes only. It does not constitute financial advice, investment recommendation, or endorsement of any project, token, or platform. Always conduct your own research and consult with a professional before making financial decisions
