Today, the OM token—the native token of the MANTRA (formerly MantraDAO) project—plummeted more than 80% within an hour, triggering widespread panic and controversy. At its worst, the crash wiped out an estimated $5 billion in market value, with investors accusing insiders of dumping large holdings just before the collapse.
Insider Allegations and Market Chaos
OM’s steep plunge on Sunday has led to a flurry of speculation and allegations of insider trading. Investors claim that insiders offloaded significant volumes of the token, crashing its price by over 90% during a period of low liquidity—Sunday evening UTC, or early Monday morning in Asia. This timing has fueled suspicions of manipulation, especially as some wallets associated with large sell-offs exhibited suspicious on-chain behavior starting in March 2025.
MANTRA’s official response blamed centralized exchanges for the meltdown. According to a public statement, the sharp decline was triggered by “reckless forced closures” of OM account holders by centralized exchanges. The statement pointed to the timing of the crash during low-volume hours, suggesting either gross negligence or deliberate market manipulation by these platforms.
Changpeng Zhao (CZ) Responds
In the wake of the crash, questions arose about whether major exchanges like Binance conducted adequate due diligence before listing OM. Binance founder and former CEO Changpeng Zhao (CZ) responded to the criticism by reaffirming a decentralized philosophy. “Neither CEX nor DEX should set up a listing process,” CZ remarked. “All tokens should be allowed to access, and transactions should be decided by users themselves.”
Regarding risk assessment, CZ added that a project’s user base can be a strong indicator of its legitimacy. “How many real users there are is usually a good indicator,” he said, emphasizing community strength over centralized vetting.
OKX Takes Action and Prepares Reports
OKX, one of the exchanges affected by the OM token collapse, has taken a proactive stance. CEO Star described the event as a “big scandal in the entire crypto industry,”. Star emphasized that on-chain data—including token unlocking, collateral positions, and liquidations—is public and can be independently verified.
OKX noted that the price collapse began on other platforms before spreading market-wide on April 14. The exchange revealed that it had been monitoring unusual activity linked to OM since March 2025 and highlighted significant changes to the token’s economic model since October 2024. In response, OKX has tightened its risk controls and issued market risk warnings to its users.
Denials from MANTRA Leadership
Despite the growing skepticism, MANTRA CEO John Mullin has firmly denied any wrongdoing. In a statement, Mullin dismissed reports that investors such as Laser Digital were involved in insider sales leading up to the token crash. “There is no evidence of insider selling by Laser Digital or other key investors,” he stated, urging the community not to jump to conclusions without verified data.
What’s Next for OM and the Crypto Industry?
The OM crash has reignited a broader conversation about transparency, risk management, and due diligence in the crypto space. As investigations continue, stakeholders are calling for improved regulatory frameworks and more robust monitoring systems to prevent similar episodes in the future.
With billions in market value evaporated and investor trust shaken, the MANTRA project now faces a critical juncture—one that may shape the future of not just OM, but the broader landscape of DeFi and token governance.
