OM Token’s $6B Crash: The Crypto World’s Latest Comedy of Errors

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Picture this: $6 billion vanishes into thin air in just 30 minutes. No, it’s not a magic trick—it’s the OM token crash. 🪄💸 Investors are now scratching their heads, wondering if this was all part of some grand, poorly executed plan. Spoiler alert: it probably wasn’t.

The crypto community, ever the optimists, had ignored the warning signs like they were spam emails. Crypto Jargon, in a series of X posts, tried to make sense of the chaos. But let’s be honest, it’s like trying to explain quantum physics to a cat. 🐱

Latest updates (April 14, 2025):

• $OM has slightly increased to between $0.65 and $0.80, but trading volume is low—people have lost trust.

• Users reported that 1.2 million $OM was moved to an unknown address today. Is there more selling happening?

• HTX and Poloniex have…

— Neel (Crypto Jargon) (@Crypto_Jargon) April 14, 2025

On April 13, 2025, OM was cruising at $6.70 with a market cap of $5.8 billion. Fast forward a few hours, and it’s down to $0.37—a 93% drop. Some traders made a killing by shorting OM, but the real question is: what caused this epic nosedive? 🤔

Earlier that day, OM co-founder Mullin tweeted, “No wifi, will be offline for a bit.” Coincidence? Probably not. Four hours later, the price tanked. Then, MANTRA’s Telegram Channel vanished into the digital ether. Suspicious much? 🕵️‍♂️

Things get even fishier when you consider that 3.9 million OM tokens were sent to OKX the day before the crash. The collapse was triggered by $66.97 million in forced liquidations, but the team controls 90% of the OM supply. So, yeah, they had the power to pull the strings. 🎭

Investor trust was already in the gutter. A month earlier, MANTRA’s OM airdrop blacklisted over 50% of wallets, claiming they were ‘bots’ without evidence. The terms for unlocking funds kept changing like a bad game of musical chairs. Investors were left feeling like they’d been played. 🎲

The Warning Signs!

The warning signs were there, but who’s got time for those? Market makers were allegedly pumping the token’s price before the crash. Airdrops kept getting delayed, raising concerns. On-chain data showed that 17 wallets sold 43.6 million OM, worth around $227 million, to exchanges. That’s 4.5% of the total supply. 🚨

Who dropped the price of $OM?

Before the $OM crash(since Apr 7), at least 17 wallets deposited 43.6M $OM($227M at the time) into exchanges, 4.5% of the circulating supply.

According to Arkham’s tag, 2 of these addresses are linked to Laser Digital.

Laser Digital is a strategic…

— Lookonchain (@lookonchain) April 14, 2025

Laser Digital denied any connection to OM token sales on OKX, and Shorooq Investors blamed the crash on a large forced liquidation. But let’s be real, when the ship is sinking, everyone’s pointing fingers. 🤷‍♂️

Mullin Denies On-Chain Data

Mullin denied Arkham’s data, claiming the wallets were “mislabeled.” He referenced a transparency report from April 8, but by then, the damage was done. Panic set in when $3.9 million worth of OM appeared on OKX. Investors sold off, and short sellers made a killing. 🤑

Community Left In Dark

Within 60 minutes, OM lost 93% of its value, and $5.5 billion in market cap vanished. The community compared it to the LUNA crash. MANTRA’s Telegram channel was deleted, leaving behind a creepy last message: “LUNA 2.0.” With no updates and no accountability, the community was left in the dark. 🌑

The Mantra team blamed broader market pressures and centralized exchanges closing positions. OKX added that the price drop started with a spike in trading volume and initial declines on exchanges outside of OKX. On April 14, OKX warned of suspicious activity across several exchanges. 🚩

Was It A Rug Pull?

Rumors of a rug pull began circulating, with traders fearing developers might abandon the project. Market investor Gordon warned it could be the biggest rug pull since LUNA/FTX. Mantra executives denied the claims, providing verification addresses to show that the team’s tokens remain locked. But trust is a fragile thing. 🧩

“To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods,” the team stated in their community update.

In the latest updates, OM is trading between $0.65 and $0.80, but trading volume remains low. Trust has evaporated. 1.2 million OM was moved to an unknown address, sparking concerns of more selling. Major exchanges like HTX and Poloniex have reduced OM trading options, and Binance has issued a warning. Meanwhile, Dubai’s VARA is investigating MANTRA’s license. 🕵️‍♀️

OM Shows No Signs Of Recovery

OKX’s CEO has called it a “major scandal,” questioning its lack of transparency. Before the crash, OM seemed unstoppable, reaching an all-time high of $9.04 in February. But like Icarus, it flew too close to the sun. Unlike LUNA, OM is showing no signs of recovery. 🌞

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2025-04-15 11:12