TLDR
- MANTRA (OM) experienced a 94% price crash, dropping from $6.30 to as low as $0.58
- CEO John Mullin denied insider dumping allegations and claims Arkham Intelligence mislabeled wallets
- The team announced the crash was not caused by advisors or investors selling tokens
- On-chain sleuth ZachXBT reported that Reef Finance founder and others allegedly sought loans against OM before the crash
- Recovery plans potentially include token buybacks and burn mechanisms, but remain in early stages
MANTRA’s OM token has suffered a devastating 94% crash, plummeting from $6.30 to as low as $0.58. The sudden price collapse occurred during “low liquidity hours on Sunday,” according to official team statements.
The cryptocurrency is currently trading at around $0.618, showing a modest 3.71% daily gain from its lowest point. This slight recovery provides a glimmer of hope for investors who watched their holdings virtually evaporate overnight.
MANTRA’s team has quickly moved to address concerns about the cause of the crash. They explicitly stated that “this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens.”
The team further clarified that tokens remain locked and subject to published vesting periods. They also emphasized that OM’s tokenomics remain intact, as detailed in their latest token report.
Allegations and Investigations
Despite official denials, questions about potential insider activity persist. On-chain sleuth ZachXBT published information suggesting suspicious activity before the crash.
According to ZachXBT, several people were allegedly offered loan deals against OM in the days leading up to the collapse. Two names frequently mentioned were Denko, the founder of Reef Finance, and a user known as Fukogoryushu.
ZachXBT noted that “REEF had similar market manipulation incidents in the past before a Binance delisting in Oct 2024 and $80M OTC deal with Alameda in 2021.”
The two names I keep hearing tied to the Mantra incident are Denko (Reef Finance founder) and Fukogoryushu as they had allegedly been reaching out to a number of people asking for massive loans against their OM in the days leading up to the -90% crash.
For those unfamiliar REEF… pic.twitter.com/jQ0YLCMoGX
— ZachXBT (@zachxbt) April 14, 2025
This isn’t MANTRA’s first brush with controversy. A 2023 Hong Kong court previously ordered six MANTRA DAO members, including CEO John Mullin, to turn over financial records after accusations of misusing funds.
CEO Response and Recovery Plans
CEO John Patrick Mullin addressed the situation during an April 14 AMA hosted by Cointelegraph. He vehemently denied insider dumping allegations and promised to provide on-chain proof to support his claims.
Mullin stated that the team is working on a recovery plan that may include token buybacks and a burn mechanism, though he emphasized these plans are still in early stages.
“We’re still in the early stages of putting together this plan. The token’s recovery is MANTRA’s preeminent and primary concern right now,” Mullin stated during the AMA.
Mullin also addressed concerns about token distribution. He claimed that 90% of OM has been distributed and blamed Arkham Intelligence for mislabeling wallets.
According to Mullin, one blockchain wallet that appears to hold around 77% of OM’s circulating supply actually contains “dummy tokens” used for multi-chain tracking.
Technical Analysis and Price Targets
From a technical perspective, there may be reasons for cautious optimism. The weekly chart shows OM’s price drop ended as it hit the weekly buy-side imbalance zone, extending from $0.380 to $0.540.
If this key support zone holds, investors may see a bullish reversal pattern emerge. The midpoint of the 94% crash sits at $1.594, which would require a 328% rally from current prices.
While such a target might seem unrealistic, it’s worth noting that OM has already bounced approximately 65% from its absolute bottom.
The daily chart shows an oversold Relative Strength Index (RSI) and steep red histograms, both reflecting the severity of the recent sell-off.
Market analysts suggest a few more days of price action development at current levels will provide clearer signals about recovery potential.
For a substantial recovery to materialize, the MANTRA team will need to rebuild trust by providing transparent explanations about the crash and implementing concrete plans to prevent similar events in the future.
The path forward for MANTRA and its OM token remains uncertain. The coming days and weeks will be critical as investors watch for both technical price action developments and fundamental updates from the team.
The MANTRA community now faces a difficult choice: cut losses or hold for a potential recovery that could take considerable time to materialize.
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