A Post-Mortem on the Mantra/OM Crash
Mantra suffered a dramatic 98% crash a few days ago. Here’s what we know: The crash, which occurred on April 13, 2025, appears to have been the result of a combination of several factors that unfolded over months. First, there are reports suggesting that an insider group, referred to as the "Kabal team," executed a massive sell-off of OM tokens. This sudden influx of tokens into the market overwhelmed demand, leading to a rapid price decline.
At the same time, in the weeks leading up to the crash, large holders of OM tokens, commonly known as "whales," began selling off significant portions of their holdings. This profit-taking behavior increased the supply of OM tokens on exchanges, exerting downward pressure on the price.
Additionally, on April 2, 2025, a substantial token burn occurred, with over 84 million OM tokens destroyed. While token burns are typically intended to reduce supply and increase value, in this context, it may have been perceived as a strategy to manipulate market perception ahead of the insider sell-off. This is an unsubstantiated claim floated; there’s no evidence of team involvement at this point.
Finally, it’s been reported that during the crisis, official communication channels were allegedly shut down, and leadership remained unresponsive. This apparent lack of transparency further eroded investor confidence and exacerbated the sell-off.
The above information points to a variety of factors underpinning the crash, but investigations are ongoing.
