Mantra Token (OM) Plummets Over 90%, Sparks Rug Pull Fears Amid Community Panic

The native token of the Mantra blockchain network, OM, has suffered a massive crash of over 90% in just 24 hours, sparking concerns of a potential rug pull.

According to CoinMarketCap data on Monday (April 14, 2025), OM plunged from around US$6.34 to a daily low of US$0.42 before partially rebounding to US$0.89. The sharp decline wiped out approximately US$878.4 million in market capitalization in a single day.

The sudden collapse ignited widespread panic across the crypto community, with many users on platform X likening the incident to the catastrophic falls of LUNA and FTX back in 2022. Accusations of a rug pull quickly circulated, with users speculating that developers might have fled with investor funds.

Seems like the Mantra team were holding a large amount of supply and market sold everything.

Team needs to address this or $OM looks like it could head to zero.

Biggest rug pull since LUNA/FTX?? https://t.co/fU0Hk0uOGr pic.twitter.com/xSz5zP1QrH

— Gordon (@AltcoinGordon) April 13, 2025

Mantra Denies Exit Scam Allegations

In response, Mantra Co-Founder JP Mullin issued a statement asserting that the project team remains active and that no team wallets were compromised. He shared the official wallet address for verification, assuring the community of transparency.

“We’re still here and not going anywhere,” Mullin wrote via the project’s Telegram group.

Meanwhile, Mantra Chain clarified that the disruption was not triggered internally, but rather due to "reckless liquidation activity" outside the team’s control.

"One thing we want to make clear: this wasn’t us. We’re actively investigating and will share more details as soon as possible," the official statement on X read.

Guys let's get a couple things straight:

- The TG was not deleted.
- The Team tokens all remain in custody, verifiable at this address - mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam
- We are actively figuring out why these massive forced liquidations occurred and will provide…

— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025

Collapse Follows Recent Ambitious Milestones

The price crash comes on the heels of major strategic moves by the project. In January 2025, Mantra signed a US$1 billion partnership with DAMAC to tokenize real-world assets including real estate and data centers on its blockchain.

Just a month later, the company obtained a full operational license from Dubai’s Virtual Assets Regulatory Authority (VARA), authorizing Mantra to legally operate in the UAE as a digital asset service provider—covering exchange operations, brokerage services, and investment consulting.