On April 14, the OM Token of MANTRA - a Layer 1 blockchain project focused on real assets - lost about 10% of its value in one hour. Subsequently, the Token suddenly dropped from $5.21 to around $0.50, decreasing 90% in just 90 minutes. Community team leader, Dustin McDaniel, confirmed that there was no intervention from the team.
Early in the morning, MANTRA's account updated that this decline was due to massive liquidation and was unrelated to the project. Co-founder John Patrick Mullin revealed that large investors were forced to liquidate on centralized exchanges. The OM Token has been in circulation since August 2020, much longer than some cryptocurrency skeptics suspected.
Some investors noted that the MANTRA protocol's Total Value Locked (TVL) was only around $13 million, while the fully diluted value of the Token reached $9.5 billion. This could be a risk signal. Moreover, three wallets were discovered transferring millions of dollars worth of OM Tokens to exchanges. One wallet received 36 million USD of OM from an exchange on March 21 and transferred 4.3 million Tokens to another exchange on Saturday, which could be a sign of a sell-off.
These activities and market information are only for informational purposes and do not constitute investment advice.
