$OM fell from over $6 to $0.37 in under 24 hours, wiping out billions in market value and sparking panic among investors.
Author: Sahil Thakur
The token behind Mantra, a prominent real-world asset (RWA) tokenization platform, has suffered one of the most severe crashes in recent crypto history. OM fell from over $6 to $0.37 in under 24 hours, wiping out billions in market value and sparking panic among investors.
The token, which earlier this year had reached a peak of $9, is currently trading around $1.03, according to the latest data. At its lowest point, the market cap collapsed from $5.9 billion to roughly $500 million in a single hourly candle.
The crash triggered widespread speculation of internal wrongdoing. Social media posts claimed that either the Mantra team or affiliated market makers offloaded a significant share of the token’s circulating supply — some alleging up to 90% of available tokens were sold over-the-counter (OTC).
Adding to the confusion, users reported that Mantra’s Telegram group was briefly inaccessible, fueling comparisons to previous high-profile collapses such as Terra Luna and FTX.
Prominent on-chain investigator ZachXBT commented on X , “What kind of statement is this? OM went down 90%+ in a single candle.”
Other investors echoed the sentiment, calling the event a potential “scam” and demanding regulatory scrutiny.
In an official statement, the Mantra team denied any involvement in the crash and attributed the event to “reckless liquidations by external actors.” The platform stressed that the project remains intact and that the team’s tokens were untouched.
“Mantra community – we want to assure you that Mantra is fundamentally strong,” the team stated. “Today’s activity was triggered by reckless liquidations, not anything to do with the project.”
JP Mullin, Mantra’s co-founder, also responded directly. He insisted that the Telegram group was still operational and shared a verification address, claiming that the team’s token holdings remain untouched.
The timing of the collapse is particularly striking given Mantra’s recent expansion. In January, the team announced a $1 billion partnership with the DAMAC Group to tokenize real estate and physical assets in the Middle East.
Just weeks later, Mantra secured a Virtual Asset Service Provider (VASP) license from Dubai’s VARA, allowing it to operate as a regulated digital asset platform in the United Arab Emirates. These moves were part of a broader push to build out blockchain-based infrastructure for real estate and cross-border finance.
Yet despite this momentum, the sudden collapse of OM has raised concerns over transparency, liquidity risks, and token economics within RWA-focused projects.
If you hold OM or were considering exposure to RWA protocols, this event is a reminder of the volatility still present in early-stage token ecosystems. Even with major partnerships and licenses, price integrity can unravel quickly in low-liquidity environments.
It also serves as a reminder to always diversify your portfolio and not be over-heavy on any single asset.
For now, Mantra’s community awaits a detailed explanation. Whether the token recovers may depend as much on trust and communication as on fundamentals.
Disclaimer: This article is for informational purposes only. It is not financial advice (NFA). Always do your own research before making investment decisions.
The crypto community was all sorts of angry – a lot of investors have lost of money and the anger is justified. It is very very difficult to recover from such a downfall as we’ve seen in the past with cases like $LUNA (even though there is nothing concrete here as of now).
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