Story Token Plummets 25% in One Hour: Echoes of the Mantra Crash?

The crypto world was rocked as the Story token (IP) took a nosedive, crashing 25% in a single hour, sending shockwaves through the market and reigniting fears of another Mantra-like disaster.

On April 14, the Story token plummeted from a high of $4.24 to a gut-wrenching low of $3.02. This sudden drop left traders scrambling and many drawing eerie parallels to the catastrophic Mantra (OM) crash.

Despite a slight rebound to $3.73, the flash crash of Story has traders buzzing about market liquidity and whispers of possible insider selling. Social media is ablaze with traders connecting the dots between the Story and Mantra crashes, with Mantra having tanked 90% of its value and vaporizing a staggering $5 billion in market cap on the same day.

Crypto journalist Colin Wu dropped a bombshell, revealing that most of Story's trading volume was funneled through Binance Futures and OKX spot markets—the very same platforms that were hotbeds for the Mantra debacle. Post-crash, these exchanges served up conflicting stories, adding fuel to the fire.

Low liquidity, or insider selling, hurt projects like Story

Binance threw its weight behind the Mantra CEO's claim, pointing fingers at forced liquidations across multiple exchanges. These liquidations, they say, are the ugly side of low liquidity, where sharp price swings can trigger a domino effect of massive futures market blowouts.

Meanwhile, OKX took a different angle, suggesting that Mantra's recent tokenomics overhaul was the real villain. They also highlighted significant token deposits hitting centralized exchanges, aligning more closely with the findings of independent sleuths who pegged insider selling as the prime suspect.

For smaller projects like Story and Mantra, the twin threats of low liquidity and insider selling can turn their worlds upside down. A Kaiko research report exposed the brutal reality of the Mantra crash, which triggered a staggering $21 million in liquidations of long positions, piling on the pressure.

Though Story managed to claw back some ground, its sudden plunge is a stark reminder of the wild volatility smaller tokens face. In a market starved of liquidity, just a few big trades can send prices into a tailspin.

(IP) (OM)