OM Token Tanks 90%—Mantra Slams CEX Actions

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OM Token Tanks 90%—Mantra Slams CEX Actions, Shoots Down Rug Pull Talk

Written by Aaron S.,

Editor-In-Chief

Last Updated: April 14, 2025

Key Takeaways

Mantra says OM’s 90% drop was caused by CEXs closing user positions without warning, not regular market activity;
The crash happened during low trading hours, and one unnamed exchange is believed to be mainly responsible;
Mantra denies taking out loans or pulling funds, saying team tokens remain locked and wallet activity is transparent.

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OM Token Tanks 90%—Mantra Slams CEX Actions, Shoots Down Rug Pull Talk

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The Mantra team has linked the recent drop in its OM OM $0.0743 token to unexpected position closures by centralized exchanges (CEXs).

On April 13, the token’s value fell from around $6.30 to under $0.50, wiping out more than 90% of its market cap, which had reached about $6 billion.

Mantra’s co-founder, John Mullin, said in an April 14 post on X that the drop was not due to typical market movement but instead came from exchanges closing user positions without warning.

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He described the actions as "reckless" and said they likely happened during a low-trading period—Sunday evening in UTC, which is early Monday in Asia. Mullin suggested this timing raised questions about how the exchanges handled the event.

Mullin said they suspect one exchange, in particular, may be responsible. He confirmed that it was not Binance $3.04B but did not name the platform.

Some traders said that Mantra might have used OM tokens to secure a large loan, which was liquidated when risk rules changed. Others have speculated that the price drop was a coordinated exit or "rug pull".

Mullin rejected these claims, saying no loan was taken and the team had not removed any funds. He also noted that all team-held tokens were still locked according to the project’s release plan and that wallet activity remains open for review.

Meanwhile, an Ethereum ETH $2,963.23 holder lost a large amount of funds after a price drop triggered an automatic liquidation on the lending platform Sky. What did Lookonchain, a blockchain analytics platform, say about it? Read the full story.