Mantra token price collapses by over 90% in 24 hours

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Replace (4.13.2025 22:02:20): This text has been up to date to offer updates from the Mantra group

The value of the Mantra (OM) token, the native cryptocurrency of the Mantra real-world tokenized asset blockchain, has collapsed by over 90% within the final 24 hours.

On April 13, Mantra fell from a value of roughly $6.3 to under $0.50 and shed over 90% of its $6 billion market cap.

Some merchants characterised the token collapse as an obvious rug pull. Market investor Gordon wrote: “[The] group wants to deal with this or OM seems to be prefer it may head to zero, largest rug pull since LUNA/FTX?”

Nonetheless, the precise cause for the collapse of the OM token’s value is just not clear on the time of this writing. Cointelegraph reached out to the Mantra group for touch upon the OM token collapse however didn’t obtain a solution by the point of publication.

The incident follows a number of high-profile token collapses and cybersecurity incidents, together with the Libra memecoin implosion and the $1.4 billion Bybit hack, accountable for billions of {dollars} in investor losses in the course of the first few months of 2025.

Mantra

Mantra token market cap and metrics. Supply: CoinGecko

Associated: Mantra unveils $108M fund to back real-world asset tokenization, DeFi

Mantra group and co-founder reply

Mantra co-founder JP Mullin responded to the OM token collapse and stated that the venture’s Telegram group remains to be on-line. Mullin added that the Mantra group’s tokens are nonetheless within the group’s custody.

“We’re right here and never going wherever,” Mullin wrote in an X post, whereas offering a verification tackle for the Mantra group’s OM tokens.

Mantra

Supply: Mantra

The Mantra Group additionally claimed that the OM value implosion was “triggered by reckless liquidations” and never associated to actions undertaken by the group.

Mantra’s current tokenization initiatives within the Center East

In January 2025, Mantra and funding conglomerate DAMAC signed a $1 billion deal to tokenize the funding conglomerate’s numerous property, which embrace actual property, information facilities, and different bodily properties on the Mantra blockchain.

Mantra obtained a virtual asset service provider license from Dubai’s Digital Property Regulatory Authority (VARA), in February 2025.

The license permits Mantra to function as a digital asset service supplier within the United Arab Emirates (UAE), working crypto exchanges, broker-dealer providers, administration, and funding consulting contained in the Center Japanese nation.

The growth of Mantra’s footprint within the United Arab Emirates was fueled by excessive demand for tokenized merchandise from actual property buyers and builders on the lookout for new ways of funding projects and securing capital.

Close to-instant finality occasions for tokenized real-world property, decreased prices, and cross-border performance are simply a number of the causes buyers cite for utilizing blockchain to safe investments and support in capital formation.

Journal: DeFi’s billion-dollar secret: The insiders responsible for hacks