Post
Why did OM's market value of 10 billion collapse?
Replies
Overall, multiple factors such as the shadow of unresolved early disputes, the highly controlled token economy, the behind-the-scenes manipulation of capital, and the promotion of the RWA narrative heat together constitute the multiple footnotes of this tragic collapse.
The project owner, the exchange, and the investors each have their own opinions. The deeper fuse of this plunge may be due to MANTRA's recent adjustment of the token economic model. Recently, MANTRA pointed out in an announcement that the community had previously proposed to unify OM as the native token of the main network and abolish the two-currency strategy, but it also brought technical challenges. For this reason, the team decided to abandon the original ERC-20 OM and establish OM on the MANTRA Chain as the standard version. At the same time, MANTRA announced that it would double the supply of OM from 888.8 million to 1.7777 billion, and introduce a 3% annual inflation rate to incentivize staking. Although this move is intended to support ecological growth, the significantly increased circulation and unlimited inflation mechanism are believed to have weakened investor confidence.
It is worth mentioning that although OM has fallen sharply, large-scale token selling is still continuing. According to the latest monitoring by Onchain Lens, MANTRA DAO staking wallet sent 38 million OM to Binance cold wallet.
Laser Digital, a strategic investor in the MANTRA Chain project, responded that Laser had no connection to the recent drop in OM prices. The claims on social media that Laser was associated with investor selling are false and misleading. Laser did not deposit any OM tokens with OKX, and the wallet mentioned in relation to OKX is not Laser's wallet. Laser's core OM investment remains locked, and there is no interest in putting pressure on the token or destabilizing the project. Transparency is important. Investment institution Shorooq Partners also issued a statement clarifying that the decline was not caused by a hacker attack or team selling, but was triggered by a large-scale forced liquidation, followed by panic selling during low liquidity periods. Shorooq emphasized that its position as a long-term equity investor has not changed, and disclosed the relevant wallet addresses to prove transparency.
Regarding the flash crash of OM, MANTRA officials explained that the chaos was not caused by the team, MANTRA Chain Association, core consultants or MANTRA investors selling tokens. The tokens are still locked and subject to the announced vesting period. The token economics remain unchanged. Please do not click on any scam links or accounts impersonating MANTRA.
