The crypto market witnessed a shocking event on April 13, 2025, as OM, the native token of the real-world asset (RWA) platform MANTRA, crashed by over 90% in just one hour, erasing $6 billion in market value. This incident has raised significant concerns about market stability and investor confidence.
What Caused The Crash?
The OM token’s price plummeted from $6.13 to below $0.87 in a single hour, with the lowest point hitting $0.37. This drastic decline was attributed to cross-exchange liquidations, which occur when leveraged trading positions are forcibly closed due to market movements. This eventually resulted in a $6 billion loss in market capitalization.
The recent market downturn was worsened by panic selling as traders and investors sought to mitigate their losses. This situation was further compounded by low liquidity and widespread liquidation, resulting in a huge decline in prices and the loss of billions in market capitalization. Many investors found themselves unexpectedly impacted, with some experiencing considerable reductions in their investments.
The MANTRA Team Responds
Binance noted that they had implemented risk control measures, including reducing leverage levels for OM, but the scale of the liquidations still overwhelmed the market. MANTRA’s co-founder, John Patrick Mullin, took to his X handle earlier today to react to the situation, describing it as “unprecedented” and citing a “massive forced liquidation” on an undisclosed exchange during a low-liquidity trading period.
“To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact, as shared last week in our latest token report. Our token wallet addresses are online and visible”, he added.
OKX’s founder, Star Xu, reacted to the incident, calling the MANTRA collapse a “big scandal,” and promised to release related reports soon. He mentioned that on-chain data regarding token unlocks and deposits are publicly available, and collateral and liquidation data from major exchanges can be reviewed. OKX is planning to increase transparency by sharing reports on the incident, which involved significant liquidations on OKX and Binance.
The crash has had a major impact on MANTRA and the entire RWA tokenization sector. Investor confidence has been severely damaged, with the incident raising concerns about the stability of RWA tokens and the sector’s readiness for mainstream adoption. MANTRA’s team now faces the challenge of rebuilding trust and addressing investor concerns.
MANTRA team is still investigating the incident and has promised to share more details. The token price remains significantly depressed, and market sentiment is uncertain. The future of MANTRA will depend on its ability to address investor concerns, deliver on its promises, and navigate the fallout from this unprecedented event.
