Could AI Have Saved $5B? Mantra’s Crash Sparks a Crypto Wake-Up Call
Mantra’s $5B crash could’ve been predicted by AI, exposing crypto’s hidden risks. Is tech the fix?
A crypto disaster unfolded, but could tech have stopped it? On April 13, 2025, Mantra (OM), a blockchain focused on real-world asset tokenization, crashed 90% in hours, plummeting from $6 to under $1. This wiped out over $5 billion in market value, shaking investor confidence. According to crypto.news, AI could have predicted—and possibly prevented—this collapse by spotting warning signs early.
What went wrong? Mantra’s fall was tied to low weekend liquidity and concentrated token ownership. Blockchain data revealed wallets linked to strategic investors moved millions of OM to exchanges like OKX days before the crash, hinting at potential selling pressure. AI tools, using neural networks, can analyze order-book depth, wallet flows, and even social media sentiment to flag such risks. Experts say deep-learning models could have forecasted slippage spikes in milliseconds, giving stakeholders time to act.
What’s the bigger picture? For new investors, this highlights crypto’s volatility and the need for better risk management. AI-driven stress testing, like kurtosis-based methods, could help projects avoid “fat tail” events—extreme losses that have hit others like Terra (LUNA) in 2022. However, relying on AI isn’t a silver bullet; it can’t fix poor governance or market manipulation, both suspected in Mantra’s case. The crash also underscores the dangers of thin liquidity, a persistent issue in crypto markets.
What can you do? Start with small investments, diversify, and use platforms with strong transparency. AI tools might soon become standard for spotting risks, but always research thoroughly.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
