There has been another historical drop in the crypto market. Mantra (OM), which is among the top 20 projects, plummeted more than 90% within a few hours. The market value of OM dropped from $6 billion to $650 million.

Crypto investors witnessed a significant drop last night. Mantra (OM), among the top 20 cryptocurrencies in the market, experienced a decline of over 90% within a few hours. When the collapse began, OM, which was trading around $6.30, dropped to $0.37. Later, OM saw some increase and is currently trading at $0.80. The market value of the crypto dropped from $6.12 billion to $650 million. This means that over $5 billion of OM’s value was erased within hours. In 2024, OM had surged over 400% becoming one of the biggest winners in the market. WHY DID MANTRA (OM) DROP? The events surrounding Mantra are deemed to be one of the largest drops in the crypto sphere.

The source of the happenings within OM, one of the biggest projects in the Real World Assets (RWA) sector, is still unknown.

Among the circulating claims on social media is that the founding team sold off their assets. Allegations include founders selling assets over-the-counter (OTC) markets and abandoning the project, including the Telegram group. It was also claimed that a wallet containing a large amount of OM tokens could have been subjected to a cyber attack. MULLING THE BLAME ON CRYPTO EXCHANGES JP Mullin, co-founder of Mantra, stated that the project’s Telegram group is still active and the team has not sold any tokens. In a post, Mullin said “We are here, and we are not going anywhere.” Blaming the exchanges for the events in Mantra, Mullin claimed that the collapse was triggered by reckless liquidations and alleged that exchanges closed their OM positions. OKX exchange quickly responded to these allegations. OKX founder Star Xu stated that exchange data is public and rejected the accusations. WHAT IS MANTRA (OM)? Mantra is a Layer-1 blockchain project operating in the decentralized finance (DeFi) sector, focusing on the tokenization of real-world assets (RWA). OM tokens allow the trading of physical assets such as real estate, artworks, and commodities in digital token form.

Moreover, lending, borrowing, and other DeFi features can be utilized through OM.