Major crypto exchanges like Binance and OKX have reacted to the recent OM price crash, ensuring users that they will look into the situation and report their findings.

On April 14, a day after the Mantra token’s market cap suffered a loss of $5.5 billion due to market volatility, Binance issued a statement through the exchange’s Customer Support account on X, reacting to the recent price crash.

According to the recent post, Binance’s initial findings reveal that the price crash was due to a series of cross-exchange liquidations that occurred over the past day.

In light of the token’s volatile state, Binance confirmed that it had attached a pop-up warning for OM (OM) token’s spot trading since January 2025, which informed users that the Mantra token had seen “significant changes” in its tokenomics, indicated by an increase in token supply.

“We remain dedicated to monitoring the situation closely and will continue to take appropriate actions to protect our users and maintain the integrity of our platform. Thank you for your continued trust in Binance,” said the Binance Help Desk account.

At press time, the Mantra token has experienced a near 90% drop in the past 24 hours. Its market cap stands at $764 million, plummeting from a previous $6 billion high. The token is currently trading hands at $0.79, down 91% from its earlier all-time high of $8.99 from last February.

In addition, Binance also stated that it had decreased leverage levels for the OM token since October last year. Despite this fact, many traders in the comments section criticized the exchange for not delisting the token before the incident occurred.

On the other hand, OKX CEO Star deemed the OM price drop as “a big scandal to the whole crypto industry.” Star also assured the crypto exchange will be preparing reports based on the incident, as all the information is available on-chain.

“All of the on-chain unlock and deposit data is public, all major exchanges’ collateral and liquidation data can be investigated. OKX will make all of the reports ready!” stated Star in a recent post.

On-chain data from CryptoNinjas revealed that 127 million OM or 13% of the token’s circulating supply has been withdrawn from Binance in the past month. Meanwhile, OKX has seen nearly 70 million token deposits, which was more than 50% of the amount withdrawn from Biannce.

What happened to OM?

Last weekend, OM experienced a major price crash by 90%, falling from $6.30 to under $0.50 in the span of just a few hours. Mantra chief executive officer JP Mullin alleged that OM’s recent price crash was due to “reckless forced closures initiated by centralized exchanges on OM account holders.”

Mullin claimed that the sell-off was not due to token sales by either the internal team or investors, stating that the OM tokens remain under lock based on the project’s vesting timeline.

“Centralized exchange partners play an important role in providing liquidity to projects like ours. We work closely with them, however they continue to exercise enormously high levels of discretion,” said Mullin.

However, on-chain analysts seem to disagree, with many stating that the sell-off began when 3.9 million OM was deposited on OKX by a wallet linked to the Mantra team. Crypto analyst Max Brown said the team allegedly holds almost 90% of the token’s total supply, which triggered the market sell-off that led to the token losing $5.5 billion in market cap.