Mantra’s recent token collapse highlights deeper-rooted issues within the crypto industry around fluctuating liquidity levels, creating additional downside volatility over the weekend, which may have exacerbated the token’s crash.
The Mantra (OM) token’s price collapsed by over 90% on April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations among disillusioned investors, Cointelegraph reported.
While blockchain analysts are still piecing together the reasons behind the OM collapse, the event highlights critical issues for the crypto industry, according to Gracy Chen, the CEO of cryptocurrency exchange Bitget.
“The Om token crash exposed several critical issues that we are seeing not just in OM, but also as an industry,” Chen said during Cointelegraph’s Chainreaction daily X show, adding:
“When it’s a token that’s too concentrated, the wealth concentration and the very opaque governance, together with sudden exchange inflows and