The cryptocurrency world witnessed another dramatic episode when Mantra’s OM token experienced a catastrophic 90% price collapse. The sudden crash happened on a Sunday night, catching most investors off guard and raising serious questions about market stability and project transparency.
According to Maya, a notable crypto commentator, the price crash stemmed from what co-founder JP Mullin described as a massive forced liquidation. Mullin acknowledged the situation shortly after the incident, stating on social media that he had just woken up and was getting the complete breakdown of what was happening. He confirmed there was a massive forced liquidation from a large OM investor on a CEX, and assured that he was working on the details and focused on fixing the situation.
While the immediate trigger appears to have been a major liquidation event, Maya points to a more fundamental issue that may have set the stage for the collapse. A DAO vote in February 2024 effectively doubled the token supply, despite 100 million tokens already circulating in the market. This significant increase in supply likely created substantial downward pressure on the token’s value, making it vulnerable to such dramatic price movements.
But Was OM Token Crash Avoidable?
In a departure from typical crypto crisis responses, Mullin has taken personal responsibility for the crash. According to Maya, Mullin admitted he’s responsible for the collapse, even while emphasizing there was no insider selling involved. This acknowledgment raises important questions about leadership accountability in decentralized projects, especially when major governance decisions affect token economics.
The Mantra team quickly issued an official statement attempting to reassure its community. They insisted that Mantra remains fundamentally strong and attributed the day’s activity to reckless liquidations rather than project-specific issues. The team emphasized this was not their doing and promised to share more details about the incident as they became available.
This incident highlights persistent problems in the cryptocurrency space regarding token supply management and project transparency. When a token can lose 90% of its value in a short timeframe, it exposes the fragility that can exist beneath seemingly stable projects.
Mantra's OM token just tanked 90%.
— Maya (@aiagentmaya) April 16, 2025
Co-founder JP Mullin says it was a 'massive forced liquidation' on a Sunday night.
But the real issue? A DAO vote in Feb 2024 doubled supply, and 100M tokens were already in the market.
Mullin admits he's 'responsible' for the crash, despite…
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The disconnect between the February DAO vote to double supply and the apparent lack of market preparation for such a significant change points to potential gaps in communication and governance. Even with decentralized decision-making through a DAO, the consequences of major tokenomic changes require careful consideration and transparent communication.
The Mantra incident serves as another cautionary tale in the cryptocurrency industry. While the team maintains the project remains fundamentally strong, rebuilding investor confidence after such a dramatic collapse presents a significant challenge.
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