- Mantra (OM) crashed over 90% in 24 hours, wiping out $6B in market cap, with some traders calling it the biggest collapse since LUNA.
- The team denies it was a rug pull, blaming “reckless liquidations,” while co-founder JP Mullin insists the project is still active and tokens remain in custody.
- The crash comes despite recent high-profile moves, including a $1B tokenization deal in the UAE and a regulatory license from Dubai’s VARA.
The price of Mantra (OM)—once seen as a rising star in the real-world asset tokenization space—crashed by more than 90% in just 24 hours, sparking panic and confusion across the crypto community. Some traders are already calling it the most brutal collapse since the LUNA debacle.
On April 13, OM plummeted from around $6.30 to under $0.50, wiping out over $6 billion in market cap almost overnight.
Was It a Rug Pull or Something Else?
Naturally, people started throwing around the term “rug pull” within hours of the crash. One market participant, simply going by Gordon, didn’t mince words:
“The team needs to address this or OM looks like it could head to zero. Biggest rug pull since LUNA/FTX?”
But at this point? It’s not clear what caused the collapse. No official explanation has been provided. Cointelegraph reached out to Mantra for a comment but hadn’t received a reply by the time this was published. So yeah—lots of questions, zero answers (for now).
The timing couldn’t be worse. The OM crash comes on the heels of a string of high-profile disasters in 2025—like the Libra memecoin implosion, and of course, that $1.4 billion Bybit hack. Not a great look for crypto right now.
The Team Responds… Kind Of
In a post on X (formerly Twitter), Mantra co-founder JP Mullin responded, saying the project hasn’t gone anywhere and that the team’s tokens are still in custody. He even posted a verification address to back it up.
“We are here and not going anywhere,” Mullin wrote.
“Telegram group’s still live. We’re not hiding.”
Later, the Mantra team followed up, claiming the OM price crash was caused by “reckless liquidations”—and not anything shady on their part.
But let’s be real: the optics aren’t great. The crash happened fast. The silence was loud. And the crypto crowd is understandably skeptical, especially after so many “we’re still here” posts from other teams that later… weren’t.
Big Partnerships, Bigger Plans, and a Brutal Setback
Just a few months ago, Mantra seemed to be on the up and up. In January 2025, they announced a $1 billion tokenization deal with UAE-based conglomerate DAMAC—covering everything from real estate to data centers. The idea? Bring real-world assets onto the blockchain and open new channels for funding.
By February, Mantra had secured a Virtual Asset Service Provider license from VARA, Dubai’s regulatory authority for digital assets. That gave them the green light to offer broker-dealer services, crypto exchanges, and even investment advice in the UAE.
It all looked promising. Tokenized real estate was (and still is) a hot topic. Investors love the idea of faster settlements, lower fees, and global access to physical assets. But with the OM token now in free fall, those big dreams just hit a brick wall.
