A dramatic collapse shook the cryptocurrency world this weekend as Mantra’s OM token plunged more than 90% in just four hours, fueling widespread panic and speculation across the digital asset community.

The token, which had been trading above $6 on April 13, suddenly tanked to nearly $0.37, according to Binance data, effectively wiping out billions in market value and erasing nearly all of OM’s 2024 gains.

At its peak earlier this year, OM reached as high as $9 after an impressive run from just under $0.02 in January. Its rise was fueled by growing excitement around real-world asset (RWA) tokenization, where Mantra had positioned itself as a leading player, boasting collaborations with Google Cloud and Dubai-based DAMAC Group.

However, the rapid and unexplained crash has left investors reeling.

Rumors of Insider Selling Take Hold

While no official explanation has been issued by the Mantra team or co-founder John Patrick Mullin, online forums and social media erupted with allegations of an insider sell-off. Some community members claimed that the team controlled up to 90% of the OM token supply, and may have liquidated large portions during the price peak, triggering a cascade of panic selling.

Screenshots circulating on X (formerly Twitter) and Telegram groups show wallets allegedly tied to the Mantra project moving substantial amounts of OM shortly before the collapse. Though these claims remain unverified, the narrative quickly spread, fueling investor skepticism and compounding the sell-off.

One post that gained traction read, “This wasn’t a correction — it was a rug pull in slow motion. The team dumped on the community while pretending to build.”

A Promising Project Faces Crisis

Prior to the crash, Mantra had been heralded as one of the most promising blockchain projects focused on real-world assets. Its vision of bringing traditional financial instruments to the blockchain — including bonds, real estate, and private equity — had attracted considerable interest from both institutional and retail investors.

The token’s meteoric price rise was largely attributed to strategic partnerships and the broader crypto narrative around tokenizing tangible assets in a decentralized environment. As regulatory conversations around RWA intensify, projects like Mantra have been seen as early movers in a space with trillion-dollar potential.

But the recent collapse has cast a shadow on that narrative.

Market Reaction and Next Steps

The crypto community has demanded transparency from the Mantra team, with many calling for an audit of token movements and clarification of wallet ownership. As of this writing, no official communication has been released by the project’s leadership, further fanning the flames of uncertainty.

Several exchanges have already flagged OM for unusual activity, and some traders are calling for delisting until clarity is provided.

Meanwhile, those who bought in during the token’s peak are nursing significant losses. Online sentiment has swung sharply from optimism to outrage, with hashtags like #MantraRug trending across platforms.

Final Thoughts

The OM token’s rapid fall serves as a stark reminder of the volatility and risks associated with the cryptocurrency market, especially in newer or less transparent projects. While the RWA narrative remains compelling, trust and accountability are paramount.

Whether Mantra can regain investor confidence or explain the dramatic turn of events remains to be seen. For now, the crash stands as one of the most significant in 2025’s crypto calendar — a painful lesson in market hype, speculation, and the need for vigilance.