The OM token emitted by the mantra of the crypto project collapsed by more than 90%, triggering disorders between investors and triggering unaccompanied allegations for the sale of initiates.
The token went from $ 6.3 to as low as $ 0.37 in hours, destroying around $ 5 billion in market capitalization.
OM had culminated at $ 9 earlier this year and on Monday recovered slightly at $ 1.
The Mantra, specializing in the tokenization of real assets (RWA), denied any involvement of its team, accusing the diving of “reckless liquidations” by centralized exchanges.
“It was not our team. We are examining and sharing more details,” published the Official X account of the project.
The co-founder John Patrick Mullin added in a follow-up declaration that the accident was triggered by the sudden closure of the positions on an unknown exchange during the low hours of liquidity.
Mullin suggested that the measures taken by the exchange of “surveillance” and have harmed both the project and retail investors.
“We are still investigating, but that is unprecedented,” he said during a live community session on X.
Online criticisms, including the blockchain analyst, Zachxbt, expressed skepticism with regard to the explanation, citing the speed and the extent of the drop in prices. Some have accused the project of having executed an outside market dump, then removing your Télégramme group.
Investors have called for legal responsibility and greater transparency. The accident made comparisons with the collapse of Terra Luna in 2022.
Mantra is regulated in Dubai as part of the Virtual Assets Regulatory Authority (Vara) and previously announced partnerships with Google Cloud and Damac Group.
The project said that a community discussion will take place in the coming days, although the concerns about centralized exchanges and the risk of challenges continue to rise.
