Mantra’s OM token, much like a cat with nine lives (or perhaps just one very confused one), staged a dramatic comeback after plummeting 90% over the weekend. The project’s team, in a move that can only be described as “damage control with a side of panic,” addressed allegations of a rug pull scam with the kind of enthusiasm usually reserved for selling timeshares.
As of April 14, OM was trading at a dizzying $1.10, a whopping 200% higher than its post-crash low of $0.37. This miraculous recovery came after Mantra’s co-founder, JP Mullin, stepped in to reassure the community. His proof? The official Telegram group was “still online.” Because nothing says legitimacy like a functioning chat room. 🕵️♂️
“We are here and not going anywhere,” Mullin declared, sharing a verification address to prove the team’s OM token holdings. He blamed the crash on “reckless forced closures initiated by centralized exchanges,” which is crypto-speak for “it’s not our fault, honest!”
This reassurance managed to calm the sell-off that had wiped out over $5 billion in market capitalization and liquidated $75.88 million worth of futures positions in a single day. Meanwhile, online commentators were quick to point out that the Mantra team, who reportedly control 90% of the token supply, might have had a hand in the chaos. Suspicious OM transfers to centralized exchanges right before the crash? Coincidence? Probably not. 🤔
Analyst Ed added fuel to the fire by alleging that the Mantra team used their OM holdings as collateral for high-risk loans on a centralized exchange. A sudden change in the platform’s loan risk parameters triggered a margin call, which, in layman’s terms, means “oops, we’re broke.”
Exchanges adjust loan risk parameters to manage market volatility and protect themselves from potential insolvency due to falling collateral values. Centralized exchanges like OKX changed their parameters after Mantra’s tokenomics update in October 2024, which doubled the total supply of OM tokens and transitioned to an uncapped, inflationary model. Because who doesn’t love a bit of inflation? 🎈
OKX CEO Star Xu didn’t mince words, calling Mantra a “big scandal” and promising to release relevant reports in the coming days. Because nothing says transparency like a delayed report. 📄
OM’s 200% rebound might look impressive, but its structure eerily resembles the classic bull trap pattern seen in Terra’s LUNA debacle in May 2022. OM’s price has crashed below the 50-week exponential moving average and is now testing resistance at the 200-week EMA. Meanwhile, its weekly relative strength index has dropped to 33.31, signaling weakening momentum and increasing the risk of another breakdown. In other words, it’s a house of cards in a windstorm. 🃏
Chartist AmiCatCrypto summed it up perfectly: “If you ask me if the bull market is over. Short answer. YES.” She added, “Any gains from this point are considered bounces.” Because in the world of crypto, what goes up must come down—usually faster than you can say “rug pull.” 🚀💥
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2025-04-14 12:54