Understanding the OM Token Plummet: Key Factors and Repercussions
The cryptocurrency market was shaken early Monday when the OM token from MANTRA DAO experienced a dramatic decline, plummeting over 90% and erasing approximately $5.36 billion in value. Recent on-chain data suggests that insider activities may have been a contributing factor to this rapid downturn.
Unveiling the Insider Transactions
In a startling revelation, just five hours before the crash, an inactive wallet for over a year executed a transfer of 2 million OM tokens, valued at $12.58 million at the time. The recipient wallet is potentially associated with venture capitalist Shane Shin. This data was obtained by Finbold through Lookonchain on April 14.
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Despite these transactions, it’s crucial to highlight that Shin, a prominent name at Shorooq Partners, has been a vocal supporter of MANTRA. However, no evidence of any improper conduct by Shin has surfaced.
Massive Offloading: The Role of Strategic Investors
Simultaneously, Arkham, a crypto intelligence platform, disclosed that 17 wallets collectively dumped 43.6 million OM tokens. This sell-off, worth approximately $227 million, constituted about 4.7% of the token’s circulating supply. Notably, two of these wallets were reportedly linked to Laser Digital, a significant investor in MANTRA Chain.
The Blame Game: Deciphering the OM Token Crash
The team behind MANTRA DAO has pointed fingers at centralized exchanges, accusing them of “reckless forced closures” during low-liquidity trading on Sunday evening. However, this explanation has not convinced many within the crypto community.
Prominent figures have taken to social media to express skepticism. Crypto influencer @cryptobeastreal tweeted, “The $OM rug will impact a lot of people in the short term… $6 billion to zero market cap is not a joke. But what if I told you this is just the beginning? What if I told you this is only the tip of the iceberg?”
John Patrick Mullin, a founder of MANTRA DAO, vehemently denied any rug pull allegations and called for improved oversight of exchange practices, which he believes can be detrimental to both projects and investors.
Amidst these conflicting narratives, executives from exchanges such as OKX and Binance have suggested that insider selling may have been a catalyst for the sell-off, challenging MANTRA’s claims.
Historical Scrutiny of MANTRA DAO
This incident isn’t the first time MANTRA DAO has faced scrutiny. Back in 2021, crypto analyst Colin Wu raised red flags about the project’s associations with the gambling platform 21Pink and its questionable investment claims involving the now-dissolved FTX exchange.
Current State of OM: Price Analysis
The recent sell-off has exacerbated OM’s already volatile market position. At the time of writing, OM is trading at $0.72, marking an 88% decrease in the past 24 hours alone.
Prior to the crash, OM’s market capitalization was at $6.06 billion on April 13, but it has since dropped to $710 million.
