$OM Token Plummets by Over 98% With Over $6 Billion Wiped Out in Hours

The $OM token, linked to the MANTRA project, experienced a catastrophic 98% crash in just one hour, wiping out approximately $5-6 billion in market capitalization. The token’s value drastically fell from around $6.30 to a low of $0.37-0.58.

What Caused the $OM Token Crash?

A crypto analyst drew parallels between the $OM token crash and the Terra Luna collapse, alleging that the MANTRA team dumped their entire token allocation, which accounted for around 90% of the circulating supply.

This supposed dump coincided with the deletion of MANTRA’s official Telegram group, fueling speculation about the team’s involvement. The market value loss was staggering, with approximately $3.5 billion evaporating in a matter of hours.

Furthermore, others point to potential shady over-the-counter deals or pre-existing concerns over supply inflation as possible contributing factors to the crash. These differing perspectives highlight the uncertainty and debate surrounding the sudden collapse of the $OM token.

However, the MANTRA team disputes these claims, attributing the crash to “reckless liquidations” by a large investor on a centralized exchange. They insist that their team was not responsible for the dump and promise to investigate the incident, sharing more details soon.

Moreover, despite the dramatic price collapse, the team asserts that the project remains strong and unaffected by the crash. The true cause of the incident remains uncertain, with conflicting reports circulating online.

What This Means for MANTRA Investors

The conflicting narratives surrounding the token crash raise significant concerns among investors. It had a devastating impact on investors, with many reporting substantial losses.

One major investor reportedly lost $3.3 million, highlighting the severity of the downturn. A 90% price drop in a single day is a major red flag, suggesting that something went seriously wrong. While the MANTRA team attributes the crash to external liquidations, many market observers remain skeptical, questioning the validity of this explanation.

This incident highlights the inherent risks of crypto investments, particularly with newer tokens. Projects can unravel rapidly, leaving retail investors to bear the brunt of the losses.

However, the sudden and drastic decline in value has left MANTRA token holders facing an uncertain future, with many wondering if their investment can recover from this devastating blow.

The coming days will be crucial in determining whether this crisis is temporary or a harbinger of more significant problems for the project. As the situation unfolds, investors will be closely watching for updates from the MANTRA team and assessing the likelihood of a recovery. The fate of the project hangs in the balance, and the outcome will likely have a lasting impact on investor confidence.