Within a stunning 24-hour period, Mantra (OM), which is an over-leveraged project backed by Real World Asset (RWA), plummeted over 90%, erasing over $3.5 billion in market cap.
The sudden plunge jolted shockwaves across the digital asset ecosystem, shattering confidence in Real World Asset (RWA) token projects.
OKX CEO Star described the debacle as “a big scandal for all of the crypto industry.” He emphasized, “All on-chain unlocking and recharge information is accessible, and major exchanges’ collateral information and liquidation information can be investigated in full.” Star also assured that OKX will make available full reports for examination.
Additionally, the sudden collapse raised questions of timing and intention. According to on-chain information, three days before the fall, a collective of large holders of $OM transferred 14.27 million tokens, amounting to about $91 million, to OKX. Their average transfer price was $6.375.
In late March, this same pool of tokens purchased 84.15 million $OM tokens from Binance at a mean price of $6.711, for a total of approximately $564.7 million.
The 69.08 million tokens that remained are now worth a paltry $62.2 million. Their total loss is an estimated whopping $406.3 million.
Whale Wallets Dump $227M Mantra OM, Fueling Market Crash
However, still, these whales could have shorted their positions elsewhere, which could have helped precipitate their own crash through deliberate selling or manipulation.
Upon closer examination, we find that 17 wallets sent 43.6 million $OM, valued at $227 million, into exchanges at the point of collapse.
This is equivalent to 4.5% of the total circulating supply. Two of these wallets are associated with Laser Digital, a well-known strategic investor in the $OM system.
Technical indicators such as the 9.86 RSI and 10.52 Stoch RSI indicate oversold levels. From bottoming at $0.37, the token now hovers around $0.90, seeking to stabilize. Nonetheless, direction remains uncertain as investors process the developments.
Nonetheless, recently, Mantra had a market cap of $6 billion and a high-profile $1 billion tokenization deal with DAMAC. Now, that future is uncertain, and questions are mounting.
