MANTRA's OM Token Collapse Exposes Fragile Market Structure

OM token's 90% crash, driven by forced liquidations and centralized supply control, sparks scrutiny over insider trading and regulatory gaps in crypto markets.

MANTRA's OM token lost 90% of its value on April 13, wiping out $5.4 billion in market capitalization in a matter of hours.
Blockchain data revealed that 43.6 million OM tokens were transferred to exchanges by 17 wallets just days before the crash, raising concerns about potential insider activity.
Laser Digital, one of MANTRA's strategic investors, formally denied involvement in the crash, refuting claims that wallets linked to the firm were used for token dumping.
Extreme supply centralization, with up to 90% of OM tokens held in a single wallet, left the market vulnerable to cascading liquidations, which totaled $66.97 million in 12 hours.
The collapse has intensified calls for stronger regulatory oversight and transparency in the crypto industry, as parallels are drawn to previous high-profile token failures like LUNA.