Mantra Token (MANTRA) with the ticker symbol OM, experienced an unprecedented crash, losing over 90% of its value in just 90 minutes. This sudden drop shocked the cryptocurrency market and raised concerns about the possibility of a scam or widespread cyber attack. Initial investigations suggest that this event has significantly impacted investor confidence and raised numerous questions about the security of digital tokens.
The Unprecedented Price Drop of Mantra Token
Mantra Token (MANTRA), with the ticker symbol OM, which has been active in the cryptocurrency market since August 2020, recently experienced a dramatic and unprecedented drop in its price. The token, which operates in the field of real-world assets (RWA), suddenly plummeted from $5.21 to $0.50, marking a 90% price drop within just 90 minutes. This crash shook the cryptocurrency market and triggered concerns about the legitimacy and security of the project.
The Crash: Causes and Reactions
The crash of the token started between 17:20 and 18:20 UTC, when the price dropped by a modest 10%. However, the decline quickly accelerated, and within a short period, Mantra Token saw a dramatic drop in its price. This sudden shift led to numerous speculations about the reasons behind this crash, with many analysts particularly raising the possibility of a scam or a widespread cyber attack.
After the incident, “Dustin McDaniel,” a senior member of the Mantra community, stated in the project’s Telegram group that the Mantra team had not sold any tokens. However, shortly afterward, the Telegram group became inaccessible, adding to the uncertainties surrounding the event. McDaniel told The Block that the team could not provide further information until a thorough investigation was conducted.
Previous Allegations and Mantra Team’s Clarifications
This incident occurred against the backdrop of previous allegations against the Mantra team, suggesting that a large portion of the circulating supply of Mantra tokens was under the team’s control. In response to these allegations, “John Patrick Mullin,” one of the project’s co-founders, clarified on social media platform X (formerly Twitter) that Mantra tokens had been circulating since August 2020, long before some individuals entered the cryptocurrency market.
Market Analysis and Investor Concerns
Meanwhile, some analysts have compared the total value locked (TVL) of Mantra, which is only around $13 million, with its fully diluted market value (FDV), estimated at around $9.5 billion. They have highlighted this discrepancy as a serious warning for investors. In this context, economic experts have emphasized that such differences could lead to significant risks in the cryptocurrency market.
Suspicious Financial Transfers and Growing Concerns
Furthermore, a member of Castle Labs named “Insomniac” revealed that three anonymous wallets had transferred millions of dollars’ worth of OM tokens to the OKX and Binance exchanges in recent days. One of these wallets received approximately $36 million worth of Mantra tokens from a Binance address on March 21 and later transferred 4.3 million tokens to the OKX exchange across eight transactions. These financial transfers have heightened concerns about potential misuse of tokens following the price crash.
Conclusion and Looking Ahead
This event has led many investors and analysts to seriously reconsider the security of digital tokens and the transparency of projects in this space. To restore public trust in the cryptocurrency market, development teams must provide more accurate information and greater transparency regarding the circumstances surrounding such incidents.
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