Mantra’s OM Token Jumps Nearly 50% After $5B Crash, Sparking Terra LUNA Comparisons

Just one day after a devastating crash wiped out billions in value, Mantra’s OM token staged a dramatic rebound, surging nearly 50%. However, the rapid recovery has stirred fresh controversy, with industry voices warning of risks reminiscent of the Terra/LUNA collapse in 2022.

OM’s price plummeted nearly 90% over the weekend, briefly touching $0.5 before reversing sharply to hit $1.03 on Monday. The sudden rebound came after the Mantra team addressed growing speculation that the crash stemmed from a coordinated rug pull.

Mounting Fears and Accusations

In response to mounting accusations, Mantra co-founder JP Mullin issued a statement assuring investors that the project remained operational. “We are here and not going anywhere,” Mullin wrote, sharing a token-holding verification address and noting that the official Telegram group was still active.

1) A quick note to say how much I appreciate all the support the MANTRA team has received in the past 36+ hours. The support and kind words have come from many sources - from partners, investors, friends, and from the wider Web3 community. Thank you.

— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 15, 2025

He claimed the crash resulted from “reckless forced closures initiated by centralized exchanges” rather than any internal wrongdoing. According to Mullin, these liquidations triggered a cascade effect that wiped out over $5 billion in market capitalization and liquidated nearly $76 million in futures contracts.

Despite the reassurance, critics remained skeptical. Many online analysts flagged suspicious activity involving large OM transfers to centralized exchanges just before the sell-off, leading to speculation that insiders may have orchestrated the event.

Community discussions have increasingly drawn comparisons to Terra’s LUNA, which collapsed following similar allegations of market manipulation and structural fragility. While the price recovery may offer temporary relief to OM holders, it has done little to resolve the deeper questions now surrounding the project.

The stunning collapse has reignited fears of insider trading and market manipulation, as traders accuse centralized exchanges and market makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term of coordinated misconduct.

No Compensation Plan, No Clear Path Forward

On April 13, OM plunged from around $6 to below $0.5, leaving stunned investors scrambling for answers. Mantra’s team has denied wrongdoing, but accusations of a pump-and-dump strategy involving insiders and exchanges continue to gain traction.

In statements to the community, Mullin argued that “reckless forced closures” by exchanges sparked the crash. He emphasized that liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term on platforms like Binance allowed large holders to offload tokens quickly, triggering a freefall that decentralized platforms might have buffered.

Many see the lack of prior communication, combined with the suspicious transfer activity, as evidence of either insider misconduct or severe structural failure. As of now, Mantra has not announced any recovery or compensation plan. OM continues to trade far below its peak, and sentiment within the community remains grim.