The Mantra token (OM) has witnessed one of the biggest crashes this Sunday as it took a fall from $6 to below $0.4. The crash has reportedly wiped off billions in market value within a span of an hour. The Mantra team has officially denied all the allegations of any team involvement. If you are someone who wants to know more about the Mantra crash, this article is for you. It brings you everything you need to know about the Mantra crypto crash. The following article also brings you information about what the team said regarding the crash and the billion-dollar wipeout.
What John Patrick Mullin Said About The Mantra Crypto Crash?
John Patrick Mullin, who is the co-founder of Mantra, took over his X account to address the Mantra token crash. He stated that the timing as well as the depth of the crash suggest a very sudden closure of account positions without prior notice. The co-founder claimed that the positions were closed without any kind of margin calls or notice beforehand. According to what the team said in another statement, reckless liquidations and exchange practices are what triggered the severe crash on Sunday.
Mantra Crypto Crash Marks The Steepest Decline This Year
According to what the reports suggest, the Mantra crypto crash is being considered the steepest decline in the cryptocurrency market in 2025 so far. Mantra is a Layer 1 blockchain that is built in order to tokenize RWA, incorporated with regulatory compliance. Cosmos SDK powers Mantra, in turn, the token supports IBC and CosmWasm. This makes the token interoperable as well as ready for smart contracts across multiple chains. The fall Mantra has witnessed today is now raising questions over the stability of RWA tokens as well as the centralized exchange practices.
Mantra Crypto Crashes During Low-Liquidity Hours
The Mantra token has witnessed a historic fall in the crypto market during the low liquidity hours. The token crashed from $6 to below $0.37 in the span of an hour, marking the steepest decline this year. Mantra token, after witnessing the crash, also posted a mild recovery to $0.8. However, it did not really help as the token is still down more than 90% since its last $8.99 peak in the month of February. Arkham Intelligence data suggests Mantra DAO has already burned down around approximately 21 million tokens through separate transactions since the 2nd of April 2025.
Mantra Denies “Rug-pull” Allegations
The Mantra team has already denied any “rug-pull” allegations through a statement to the public. It has been claimed that the Mantra crypto crash is not a result of any kind of insider token dump. The team also said that its allocation remains locked and verifiable on-chain. It has blamed forced liquidations for the fall in the price. Forced liquidations refer to when leveraged trading positions fall below maintenance requirements. This often leads to automatic selling, leading to an increased decline in price.
Mantra To Face Struggles In Rebuilding Investor Trust
After the recent Mantra crypto crash, the project will now face significant struggles in rebuilding the trust of the investors. Its partnerships with giants like Google Cloud and Dubai’s DAMAC Group are under threat as well. Hank Huang, who is the CEO of Kronos Research, also believes incidents like the Mantra crash test the trust of the investors. He also said that the incident has raised questions over the safety of the mainstream adoption of tokenized assets. Huang believes the RWA industry is still in the infant phase and needs a lot of work in building a resilient infrastructure. Mullin argued that the use of discretionary powers without due internal and external oversight will lead to dislocations like this, negatively impacting both the projects and the investors equally.
Frequently Asked Questions (FAQs)
Q1. What caused the Mantra crypto crash?
The Mantra token crash was reportedly triggered by sudden forced liquidations and exchange-related practices, as per the official team statement.
Q2. How much value did Mantra (OM) lose during the crash?
Mantra fell from $6 to below $0.4 in under an hour, wiping out billions in market value.
Q3. Was the Mantra crash a rug pull?
No, the Mantra team has denied all rug-pull allegations and confirmed that team allocations remain locked and verifiable on-chain.
Q4. What did John Patrick Mullin say about the Mantra crash?
John Patrick Mullin stated that account positions were closed without margin calls or prior notice, calling the crash “sudden and unexpected.”
Q5. Will the Mantra token recover from this crash?
Although there was a mild recovery to $0.8, the token remains down over 90% from its February peak. Recovery depends on investor trust and market response.
