Mantra's OM Token Crash: Insider Selling or Forced Liquidations?

Hold onto your hats, crypto fans! Mantra's OM token took a nosedive, losing a whopping 90% of its value, and now everyone's pointing fingers at insider selling. The latest move by Mantra DAO has only added fuel to the fire.

Mantra (OM) just dumped more tokens into exchange wallets, and you better believe it's raising eyebrows. On Monday, April 14, Mantra DAO—the brains behind this real-world asset-focused project—shoved another $26.96 million in OM tokens into a Binance wallet. Talk about making a statement!

With 90% of $OM already flushed down the drain, it looks like the $OM team might be gearing up for another sell-off. Just 2 hours ago, the @MANTRA_Chain DAO staked wallet sent 38M $OM ($26.96M) straight to #Binance's cold wallet. Buckle up, folks!

This latest move came hot on the heels of Mantra's price plummeting 90%, from a high of $6.28 to a measly $0.7192. The crash wiped out over $5 billion in market cap, and you can bet analysts are blaming it on insider selling.

Here's the kicker: the Mantra team holds a staggering 90% of the OM token supply. So yeah, when they start moving funds around, you better believe it's going to raise some red flags about insider selling.

Mantra CEO claims team did not dump tokens

But wait, there's more! Mantra's CEO, JP Mullin, is fighting back, claiming that the team and investors had nothing to do with the sell-off. He's pointing the finger at forced liquidations triggered by those pesky centralized exchanges.

However, a bunch of independent analysts who've been tracking the token movements on-chain are calling BS on that. Take crypto analyst Max Brown, for example—he spilled the beans that Mantra moved 3.9 million OM tokens to OKX right before the price tanked.

Here's the thing: once those tokens hit centralized exchanges, they vanish from the on-chain radar. So, while independent analysts can't prove a sale happened or didn't happen, the exchanges themselves can dig into it. And guess what? Major CEXs are already on the case.

Binance is backing up the CEO's story, saying their initial findings point to cross-exchange liquidations as the likely culprit. But OKX is throwing a curveball, mentioning "major changes" to OM's tokenomics and a bunch of on-chain addresses dumping tokens on centralized exchanges.

(OM)