Mantra Token Plummets Over 90% in a Day: What Went Wrong?

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In a shocking turn of events, Mantra (OM), the native token of the Real World Asset (RWA) tokenization blockchain, suffered a catastrophic decline, shedding over 90% of its value within 24 hours.

The crash has left investors reeling and sparked heated debates across the crypto community, with some drawing parallels to infamous collapses like Terra Luna and FTX.

A Meteoric Rise and a Devastating Fall

Just days ago, Mantra was riding high, boasting a 640% surge over the past year and a market capitalization peaking at $6 billion. By April 14, 2025, however, its value nosedived from $6.34 to a daily low of $0.42, before slightly recovering to $0.89, according to CoinMarketCap. This obliterated nearly $5.5 billion in market cap, reducing it to a mere $485 million.

Mantra Chart. Source: Tradingview

The sudden drop prompted accusations of a “rug pull” – a term used when project insiders allegedly dump their holdings and abandon the project. Social media platforms, particularly X, buzzed with outrage and speculation.

“This feels like Terra Luna all over again,” tweeted analyst CryptoSage, echoing sentiments of betrayal shared by many investors.

Community Allegations and Market Manipulation Claims

The X community was quick to point fingers, with some alleging that the Mantra team sold off a massive portion of the token’s circulating supply. One user, TrimBot, labeled the incident “blatant market manipulation,” while another, AltcoinGordon, questioned if this was “the biggest rug pull since LUNA/FTX.”

Adding fuel to the fire, rumors swirled that Mantra’s official Telegram group had been deleted, though the team later refuted these claims. Mantra’s lack of immediate clarity only deepened the mistrust.

Mantra’s Response: Damage Control

In response to the chaos, Mantra’s Co-Founder and CEO, Patrick Mullin, took to X to address the crisis. He firmly denied allegations of foul play, stating:

“The Telegram group is still active, and team tokens remain secure. We’re investigating the cause of these massive liquidations and will provide updates soon.”

Mantra Chain also issued a statement, attributing the crash to “reckless liquidations” not initiated by the team. They emphasized that their systems remained secure and promised a thorough investigation.

Mantra shared a wallet address to verify that team tokens were still in custody, aiming to restore some confidence among rattled investors.

Ambitious Plans Derailed?

The crash comes at a particularly inopportune time for Mantra, which had recently announced bold initiatives. In January 2025, the company secured a $1 billion deal with DAMAC Group to tokenize assets ranging from real estate to data centers.

A month later, Mantra obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), positioning it to legally operate as a digital asset exchange and service provider in the UAE.

Additionally, Mantra launched the Mantra Ecosystem Fund (MEF), a multi-year initiative to support RWA and DeFi projects worldwide. Backed by prominent partners like Laser Digital and Brevan Howard Digital, the MEF aimed to provide grants, capital, and regulatory support to emerging blockchain ventures.

“We’re building a growth engine for the next wave of blockchain innovation,” Mullin had said at the fund’s launch, highlighting its focus on lending, trading, and infrastructure.

It remains uncertain whether the price collapse will jeopardize these plans or erode the confidence of Mantra’s high-profile partners.

Echoes of Past Crises

The crypto community’s comparison to Terra Luna’s 2022 implosion underscores the severity of Mantra’s predicament. While the exact cause of the liquidations remains under investigation, the incident highlights the volatility and risks inherent in the crypto market, particularly for projects tied to complex RWA tokenization.

Efforts to reach Mantra for further comment were unsuccessful. At the time of reporting, their website appeared unresponsive to media inquiries.

What’s Next?

As Mantra scrambles to uncover the root cause of the crash, the crypto world watches closely. Will the team manage to restore trust and stabilize the token, or is this the beginning of a deeper unraveling? For now, investors are left grappling with uncertainty in what has become one of 2025’s most dramatic crypto sagas.

This is a developing story. Updates will follow as more information becomes available.