Mantra (OM) Plummets Over 40% as Liquidity Crisis Sparks Investor Fears

In a sudden and alarming turn of events, the Mantra (OM) token has plunged more than 40% in price due to severe liquidity concentration issues, according to on-chain analytics and market observers. The token, which had recently seen an upward trend, crashed from $1.09 to nearly $0.65 on April 15, 2025, wiping out millions in market value within hours.

According to blockchain analytics firm Lookonchain, the crash was triggered after a whale offloaded 2.2 million OM tokens—worth approximately $2.3 million—into a highly illiquid trading pair on Uniswap V3. This move caused a domino effect, triggering panic among retail investors and automated trading bots, amplifying the token’s freefall.

📉 NEW: MANTRA (OM) token crashes over 90% in 24 hours

Co-founder JP Mullin breaks silence:
🔹 Team tokens haven’t moved
🔹 Telegram support is still active
🔹 Blames “reckless liquidations” — not insider activity
👉 Community demands transparency as panic sets in.
Will MANTRA… pic.twitter.com/tvlBgKVaYW

— AltCoiners.live (@alt_coiners) April 14, 2025

Experts warn that the OM token’s liquidity was too concentrated in a single Uniswap V3 pool, with around 75% of OM’s liquidity resting within the $0.90–$1.10 price band. Once the price dropped below that threshold, the pool offered little resistance, leading to a severe drop in trading stability and investor confidence.

🚨 UPDATE: Mantra founder JP Mullin says the OM token crash was caused by "reckless forced closures" by centralized exchanges during low-liquidity hours on a Sunday evening (UTC). 😳📉

He hinted that one specific exchange may be responsible—but the team is still investigating… pic.twitter.com/ql3B8gXbDf

— AltCoiners.live (@alt_coiners) April 14, 2025

The team behind Mantra has yet to release an official statement addressing the crash. However, industry analysts have emphasized the importance of proper liquidity management and diversification, especially for projects attempting to scale in the volatile DeFi space.

The OM token has been part of the Mantra Chain ecosystem, which focuses on real-world asset (RWA) tokenization. The platform gained attention earlier this year after a series of high-profile partnerships and its integration into Cosmos-based ecosystems. But this incident may raise questions about its long-term resilience and readiness for mainstream adoption.

Community sentiment remains mixed. While some investors believe the current price dip presents a buying opportunity, others are calling for more transparency and robust treasury management from the Mantra development team.

As the situation unfolds, the Mantra (OM) case stands as a stark reminder of how quickly sentiment and price can shift in crypto—especially when liquidity is at stake.

Author
Surabh Yadav