- Mantra’s OM token plummeted 90% on April 13 and continued to decline, falling an additional 9.4% over the 24 hours, as investor confidence hits rock bottom.
- Bitget CEO Gracy Chen cited extreme token concentration, lack of governance, and weekend liquidations as causes behind the collapse.
- Mantra’s CEO denied insider selling and proposed burning team tokens to restore trust, but the community remains unconvinced, with many calling it a rug pull.
Crypto markets barely had time to react before Mantra’s OM token cratered 90% in a few hours on Sunday, April 13. What started as another weekend selloff turned into a full-blown meltdown, and it keeps on going.
The chart from CoinMarketCap doesn’t show any sign of recovery, not even a slight uptick in price. If you think it couldn’t go any lower, think again, because in the last 24 hours, OM tanked 9.42%
With this in mind, it is not a shocker that investor sentiment is pretty much nuked all the way to rock bottom.
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The Usual Suspects
Bitget CEO Gracy Chen told Cointelegraph that OM’s collapse wasn’t just about the token itself, but rather a case study of everything still broken across the space. That includes Token concentration, zero governance transparency, sudden exchange flows, and, of course, forced liquidations during weekend ghost volume. Or in her own words:
When it’s a token that’s too concentrated, the wealth concentration and the very opaque governance, together with sudden exchange inflows and outflows. That, combined with the forced liquidation during very low liquidity hours in our industry, created the big drop off.
Bitget CEO Gracy ChenCo-founder Jean-Patrick Mullin denied insider involvement, claiming team tokens were still locked and pointing the finger at forced exchange liquidations. “Our Telegram never closed, our team never sold,” Mullin said, but the explanations haven’t done much to calm nerves, especially with no public wallet proof and rising suspicions about how the sell-off really started.
And now, Mullin believes that burning all of his team’s tokens is the answer to regain a bit of control and, potentially, investors’ confidence. Most in the community, however, are not buying it, and calling Mantra another rug.
Just this time, it seems people are more… desensitised, I guess.
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