The Layer 1 Blockchain MANTRA project recently released an official response to the "OM Token decline" incident on their blog. According to MANTRA, the strong market volatility of OM was due to reckless forced liquidation, carried out by centralized exchanges against OM account holders. Account positions were suddenly closed without appropriate warnings or prior notifications, negatively impacting the market during a low liquidation period, especially during early morning hours in Asia.
MANTRA points out that centralized trading partners play a crucial role in providing liquidation for projects, but may lack internal and external oversight, leading to chaotic market conditions. The MANTRA team and MANTRA Association affirm that this incident was not caused by them, their core advisors, or MANTRA investors, as the Tokens remain locked and follow the previously announced vesting period.
Meanwhile, the MANTRA team stated that the OM Token economics remain unchanged and their Token wallet addresses are still online and transparent. Previously, the MANTRA OM Token price had unexpectedly dropped 90% in the early morning, and the team blamed this on irresponsible liquidation.
