Mantra’s $0.4 Crash Wipeout: Is OM’s 95% Plunge a Crypto Red Flag?
Mantra’s OM token crashes below $0.4, erasing gains after a 95% April drop. Traders demand answers amid liquidation chaos. Is OM doomed? Find out!
Mantra’s OM token, tied to a platform tokenizing real-world assets (RWA) like real estate, plummeted below $0.40 on May 8, 2025, erasing daily gains after failing to capitalize on a broader crypto rally. This follows a catastrophic 95% collapse on April 13, when OM crashed from $6.21 to $0.49 in hours, wiping out $5.5 billion in market cap. Traders are still seeking answers amid allegations of reckless liquidations and poor communication.
What’s Happening?
The April crash, described as one of crypto’s biggest disasters since Luna’s fall, was blamed on forced liquidations on centralized exchanges, though Mantra’s team denied involvement, calling the project “fundamentally strong.” On-chain sleuths like Choze spotted large OM transfers to exchanges, fueling speculation of insider dumping. The token’s RSI hit 17.18, signaling oversold conditions, but bearish trends persist, with OM trading below its 20-day ($0.51) and 50-day ($0.74) moving averages.
The April crash, described as one of crypto’s biggest disasters since Luna’s fall, was blamed on forced liquidations on centralized exchanges, though Mantra’s team denied involvement, calling the project “fundamentally strong.” On-chain sleuths like Choze spotted large OM transfers to exchanges, fueling speculation of insider dumping. The token’s RSI hit 17.18, signaling oversold conditions, but bearish trends persist, with OM trading below its 20-day ($0.51) and 50-day ($0.74) moving averages.
Why It Matters
Mantra’s promise to bridge traditional assets to blockchain made it a Top 50 project, but the crash has shattered trust. The RWA sector, valued at $3.2 trillion, relies on credibility, and Mantra’s failure could scare investors from similar projects. A recovery to $0.50-$0.54 is possible if OM breaks $0.42 resistance, but ongoing silence from the team and token unlocks risk further declines to $0.30. Bitcoin’s $100,000 rally hasn’t lifted OM, highlighting its isolated struggle.
Mantra’s promise to bridge traditional assets to blockchain made it a Top 50 project, but the crash has shattered trust. The RWA sector, valued at $3.2 trillion, relies on credibility, and Mantra’s failure could scare investors from similar projects. A recovery to $0.50-$0.54 is possible if OM breaks $0.42 resistance, but ongoing silence from the team and token unlocks risk further declines to $0.30. Bitcoin’s $100,000 rally hasn’t lifted OM, highlighting its isolated struggle.
What’s Next?
Mantra’s CEO speech, expected soon, could clarify the debacle or deepen distrust if vague. Regulatory scrutiny of centralized exchanges may tighten, impacting DeFi. Traders should watch for volume spikes or team updates. Without transparency, OM risks fading into obscurity.
Mantra’s CEO speech, expected soon, could clarify the debacle or deepen distrust if vague. Regulatory scrutiny of centralized exchanges may tighten, impacting DeFi. Traders should watch for volume spikes or team updates. Without transparency, OM risks fading into obscurity.
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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.
