Mantra In Crisis: Team Denials vs On-Chain Evidence

The MANTRA team released its comprehensive overview of the events surrounding the dramatic 90% decline in the OM token's value on April 13, 2025. 

In the report, MANTRA asserts that neither the team nor its advisors sold any OM tokens during the market downturn. All team and advisory allocations remain locked. The report attributes the price collapse to forced liquidations of leveraged positions on centralized exchanges during low-liquidity hours. This cascade effect led to significant downward pressure on the token's price.

The MANTRA report is available via this link: Mantra Statement of Events: April 13, 2025

Does the Report Really Explain a 90% Drop? Short answer NO

The report does explain the Forced Liquidity, identifying a liquidity cascade — a domino effect of margin calls and liquidations — as the primary reason. This is a plausible scenario during low-volume hours (around 2:00 am HKT), especially if leveraged positions used OM as collateral. Additionally the report suggests a divergence between Binance and OKX pricing helped trigger a panic.

What's Missing or Weakly Addressed:

Why Did So Many OM Tokens Hit Exchanges Right Before the Crash?
Blockchain data (from Lookonchain and SpotOnChain) clearly shows:

• 6 million OM deposited by 17 wallets
• 27 million OM sent to OKX by whales
• That’s ~$350 million in value pre-crash — a massive supply dump, and the report brushes over it.

Who Owns the Dumping Wallets?
The team claims these wallets aren’t theirs, but makes no effort to verify ownership, trace activity, or engage in transparent labeling. This is an required answer that has been omitted.

Lack of Accountability for Insiders:
They don't address why this much OM was available to be used as collateral on centralized exchanges in the first place. Did early investors or insiders liquidate?

Final Take:

The technical explanation is valid, but incomplete. Forced liquidations can amplify a crash — they rarely start one without a big sell trigger.  Yes, forced selling contributed, but it doesn't fully explain the scale or the timing

Blockchain data tells us someone knew — and prepared — ahead of time. Until those questions are addressed, doubt remains.

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