Mantra Token Crashes 90% in One Hour, Team Blames 'Reckless Liquidations
The Mantra token (OM) experienced a drastic decline of over 90% in one hour, dropping from nearly $6 to below $0.4, resulting in billions lost in market value. Co-founder John Patrick Mullin indicated that the crash was due to sudden account position closures without margin calls or notice, attributing it to actions by exchanges. The project described the incident as "triggered by reckless liquidations." This crash is one of the steepest declines in crypto this year, raising concerns about centralized exchange practices and the stability of real-world asset (RWA) tokens. Mantra, a Layer 1 blockchain focused on tokenizing real-world assets, saw its token drop to $0.37 during low liquidity before recovering slightly. The team denied allegations of a "rug pull" or insider dumping, asserting their token allocation remains locked. The incident poses risks to partnerships with organizations like Google Cloud and DAMAC Group. Experts highlighted the need for improved infrastructure and investor confidence in the RWA sector. The Mantra team faces challenges in rebuilding trust following this event.
