The Mantra team has linked the recent drop in its OM
$0.6751
token to unexpected position closures by centralized exchanges (CEXs).
On April 13, the token’s value fell from around $6.30 to under $0.50, wiping out more than 90% of its market cap, which had reached about $6 billion.
Mantra’s co-founder, John Mullin, said in an April 14 post on X that the drop was not due to typical market movement but instead came from exchanges closing user positions without warning.
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He described the actions as “reckless” and said they likely happened during a low-trading period—Sunday evening in UTC, which is early Monday in Asia. Mullin suggested this timing raised questions about how the exchanges handled the event.
Mullin said they suspect one exchange, in particular, may be responsible. He confirmed that it was not Binance
$8.93B
but did not name the platform.
Some traders said that Mantra might have used OM tokens to secure a large loan, which was liquidated when risk rules changed. Others have speculated that the price drop was a coordinated exit or “rug pull”.
Mullin rejected these claims, saying no loan was taken and the team had not removed any funds. He also noted that all team-held tokens were still locked according to the project’s release plan and that wallet activity remains open for review.
Meanwhile, an Ethereum
$1,636.79
holder lost a large amount of funds after a price drop triggered an automatic liquidation on the lending platform Sky. What did Lookonchain, a blockchain analytics platform, say about it? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
