Mantra Token Collapse: Insider Manipulations Behind the Sudden Crash

The token of the Mantra project, known as RWA, experienced a drastic drop due to manipulations by insiders who control over 90% of the supply, as concluded by OddEyeResearch.

On April 13, the price of OM plummeted by approximately 90% within a short period, leading to a reduction in the coin’s market capitalization by $5.5 billion. The community suspected the team may have engaged in a rug pull scheme.

However, researchers at OddEyeResearch suggest that the crash was triggered by a «minor betrayal» from a member of the group manipulating the asset.

«On-chain evidence and surrounding circumstances indicate that the group, including Mantra Foundation, was involved in a Pump & Dump scheme for the token. The dump appeared to occur partly unintentionally, as rumors circulated about forced liquidation of OM positions,” the experts noted.

They believe the sequence of events unfolded as follows:

«We think the recent OM crash resulted from a member of the Mantra group breaking the collusion and taking unilateral market actions, whether voluntarily or under duress. We know a creditor compelled a certain organization to liquidate its collateral in OM. This may be the alliance member mentioned earlier,” analysts from OddEyeResearch stated.

They emphasized that restoring the «previous equilibrium» will be extremely difficult due to the loss of trust among insiders. This situation resembles a classic prisoner’s dilemma, the experts added.

«Market manipulation is a crime,» commented CEO of CryptoQuant, Ki Young Ju, regarding the findings of their investigation.

Social media users noted significant OM deposits to exchanges in April, with 43.6 million tokens ($227 million at the time) moved from 17 wallets, accounting for 4.5% of the circulating supply. According to Arkham, two addresses were linked to Laser Digital, a strategic investor in Mantra.

Following the OM crash, the OKX exchange added a warning about increased volatility and risks on the asset’s page. The platform team pointed out the following circumstances:

John Patrick Mullen, co-founder and CEO of Mantra, assured that neither the team nor the project’s investors were involved in the incident after the OM collapse. He claimed that the token’s price movement was caused by «reckless forced liquidations» initiated by exchanges.

The entrepreneur promised to provide a detailed report on the situation soon. He also thanked early investors of Mantra, such as Shorooq and Laser Digital, for their support.

«We will do everything in our power to provide accurate, timely, and verified information as soon as it becomes available. We take our responsibility to the community very seriously. You will know as soon as we do,» Mullen wrote.

To restore market trust, the project plans to launch token burning and buyback programs, the head of Mantra added.

It is worth reminding that in early April, the prices of approximately ten low-liquidity coins experienced significant drops, which were linked to the actions of market maker Wintermute.