In a dramatic turn of events, Mantra’s OM token, once a beacon in the real-world asset (RWA) tokenization space, suffered a catastrophic 90% price collapse on April 13, 2025. The token’s value plummeted from $6.33 to under $0.50 within an hour, erasing over $5.5 billion in market capitalization and triggering $68.86 million in liquidations.
Unraveling the Collapse
The sudden downturn sparked a flurry of speculation. Rumors circulated about a potential hack of the Founders Wallet, suggesting insider malfeasance. However, blockchain analytics platforms such as Lookonchain, SpotOnChain, and Arkham Intelligence found no evidence of unauthorized access or unusual outflows from the Founders Wallet. Mantra’s co-founder, John Patrick Mullin, confirmed that team tokens remain locked and subject to vesting schedules, with no movement detected during the crash.
Exchange Liquidations and Whale Movements
Mantra’s official stance attributes the crash to “reckless forced closures” by centralized exchanges (CEXs). Mullin claimed that an unnamed exchange initiated sudden account position closures without warning, triggering a cascade of liquidations during a low-liquidity period.
Adding to the complexity, on-chain data revealed significant OM token deposits to exchanges in the days leading up to the crash. Lookonchain reported 17 wallets depositing 43.6 million OM (approximately $227 million, 4.5% of the circulating supply) to exchanges starting April 7. Two wallets were linked to Laser Digital, a strategic investor. SpotOnChain noted a group of whales moving 14.27 million OM (approximately $91 million) to OKX three days prior.
Denials and Investigations
Laser Digital and Shorooq Partners, both investors in Mantra, denied involvement in the token movements. Laser Digital stated that the referenced wallets did not belong to it, asserting no involvement in the recent price collapse of OM. Shorooq Partners emphasized that no tokens had been sold, highlighting their long-term equity investment in Mantra. Cointelegraph
Blockchain investigator ZachXBT identified two individuals, Reef Finance founder Denko Mancheski and X user Fukugo Ryōshu, as potentially linked to the crash. They allegedly sought massive loans against their OM holdings in the days leading up to the collapse. While these interactions don’t prove wrongdoing, they add to the suspicions surrounding the event. CryptoSlate
Looking Ahead
The Mantra token’s collapse underscores the volatility and risks inherent in the crypto market, especially concerning centralized token governance and exchange practices. As investigations continue, the crypto community watches closely, seeking transparency and accountability to restore confidence in the burgeoning RWA sector.
For a deeper dive into the incident, you can watch Mantra co-founder JP Mullin’s explanation here: