The OM token, the native asset of the MANTRA ecosystem, plummeted by 93% within just 30 minutes on April 13, 2025, wiping out more than $6 billion in market capitalization. Once seen as a rising star in the Real World Asset (RWA) token sector, OM’s sudden collapse is being compared to the catastrophic downfall of Terra Luna, with some investors now questioning whether the entire event was orchestrated.

At around 6:00 PM UTC, OM’s price nosedived from $6.70 to $0.37, triggering mass liquidations, panic selling, and chaos across multiple exchanges.

Suspicious Timing and On-Chain Movements

The red flags were there. Just hours before the crash, OM co-founder Mullin posted a cryptic message on X (formerly Twitter): “No wifi, will be offline for a bit.” Then, in an eerily timed sequence of events, the MANTRA Telegram channel was deleted at 9:00 PM UTC. Investors were left stunned.

Even more troubling was the discovery that 3.9 million OM tokens had been transferred to OKX just a day before the crash. While some traders capitalized on the collapse by shorting OM, others pointed to this suspicious transfer as a potential trigger.

Data shows that $66.97 million in forced liquidations occurred in just 12 hours. While large liquidations can shake a market, many believe the issue runs deeper—especially given that the MANTRA team reportedly controls 90% of OM’s supply.

Broken Promises and Community Frustration

Investor confidence had already been eroding due to controversial airdrop restrictions, delayed releases, and changing token unlock policies. Initially offering a 20% unlock, the rules were suddenly changed to 0.3% daily, then altered again to a 10% unlock with a multi-year vesting plan ending in 2027.

These shifting terms left many investors trapped with little liquidity, further stoking frustration.

To make matters worse, in the days before the crash, 17 wallets offloaded 43.6 million OM, worth approximately $227 million, onto exchanges—representing 4.5% of the total supply.

Blame, Denial, and Confusion

Both Laser Digital and Shorooq Investors denied involvement in the mass token sales, instead pointing to forced liquidations as the primary cause of the collapse. Mullin, for his part, rejected on-chain data linking wallet addresses to the core team, claiming Arkham’s data was “mislabeled” and citing a transparency report released days earlier.

Still, panic spread rapidly once the large token transfer to OKX was spotted. The fear of insider selling and ongoing over-the-counter (OTC) deals—reportedly offered at a 50% discount—fueled a wave of dumping.

Amid the crash, OM’s Telegram group vanished, leaving behind one final eerie message: “LUNA 2.0.”

Was It a Rug Pull?

As rumors of a rug pull gained steam, comparisons to the LUNA and FTX collapses began circulating. Some community members accused developers and early investors of abandoning the project. Crypto analyst Gordon called it “possibly the biggest exit scam since LUNA.”

However, MANTRA executives firmly denied the accusations. In a public update, the team clarified that all developer and advisor tokens remain locked per the published vesting schedule.

“To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens,” the statement said.

Regulatory Scrutiny and Exchange Warnings

The damage, however, had already been done. Major exchanges like HTX, Poloniex, and Binance have since limited OM trading. Binance even issued a formal warning. Meanwhile, Dubai’s VARA regulatory authority has opened an investigation into MANTRA’s licensing and conduct.

Adding to concerns, 1.2 million OM tokens were recently moved to an unknown wallet, fueling fresh fears of further dumping.

No Signs of Recovery

While OM briefly rebounded to trade between $0.65 and $0.80, trading volume remains low and investor trust is shattered. Once priced at an all-time high of $9.04 in February, OM’s fall from grace is dramatic—and so far, unlike Terra Luna, there’s no recovery in sight.

As of now, the future of the OM token and the MANTRA ecosystem hangs in the balance. With investigations ongoing and investor confidence at an all-time low, the question remains: Was this a market failure—or a well-executed exit plan?