• OM token plunged nearly 90%, losing $5.5 billion in market cap within a day following heavy liquidations.  
• Binance and OKX are investigating the incident with Binance citing prior warnings and leverage reductions since October.  
• On-chain analysts link the price collapse to large token deposits by a wallet associated with the Mantra project team.

On April 14, the OM token from the Mantra project recorded a severe decline, plummeting nearly 90% within 24 hours. The market cap, once standing at $6 billion, has dropped to $764 million. Binance cited a series of cross-exchange liquidations as the primary cause behind the sudden drop, which has stirred significant concern across the crypto community.

Binance responded by stating it had previously reduced leverage for OM since October 2024. Additionally, the exchange had already introduced a warning for OM spot trading since January 2025, alerting users to “significant changes” in the tokenomics due to increased supply. Binance emphasized its commitment to monitoring the situation and implementing safeguards to maintain platform integrity.

OKX Identifies On-Chain Data Irregularities

Meanwhile, OKX CEO Star described the situation as a major issue impacting the credibility of the crypto sector. OKX confirmed that it will release a detailed report, citing the public nature of on-chain unlocks and liquidation data. Exchange officials noted that over 70 million OM tokens were deposited into OKX, while 127 million OM were withdrawn from Binance over the past month.

Mantra CEO JP Mullin attributed the crash to forced closures initiated by centralized exchanges. He denied internal sell-offs, stating that tokens remain locked under the project’s vesting schedule. However, blockchain analysts dispute this claim. They linked a deposit of 3.9 million OM to a wallet associated with the Mantra team, which reportedly triggered the cascade of sell-offs.

Crypto analysts, including Max Brown, alleged that the team holds up to 90% of OM’s total supply. The sell-off, they claim, began shortly after these tokens moved on-chain. The resulting price fall took OM from $6.30 to under $0.50 in a matter of hours, with its current trading price at $0.79.

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