Mantra, a real-world tokenized asset blockchain has accused an unnamed cryptocurrency exchange as the catalyst behind the sudden dip of its native token, OM. The co-founder of the project, John Mullin, while interacting with community members and investors on Monday made the accusations.
Mullin, in the post, established that the project team has discovered why OM went down by 91% on Sunday. According to the co-founder, the token dipped after centralized exchanges “recklessly forced closures on OM account holders.”
He emphasized that the timing and severity of the attack indicated that a sudden closure of account positions triggered the negative movements. However, the Mantra co-founder stated that a particular exchange was behind the accident but quickly cleared that Binance had no involvement in the issue.
Furthermore, in his submission, the co-founder squashed rumors that the team used the tokens as collateral. He argued that the tokens are locked away until the end of their vesting period which is publicly known.
Meanwhile, the Mantra project team announced that the executive will share more insights into the massive liquidation in a virtual community hangout on X.
How Mantra is enduring heavy backlash on OM’s sudden
Currently, community members and investors are accusing the Mantra team of a rug pull considering how the price movements of OM impacted the market. On April 13, the price of OM, the native token of Mantra, went down from $6.3 to less than $0.50.
The significant price dip compelled the token to lose more than 90% of its market cap, worth $6 billion before the plummet. This negative rally made community members suggest that the Mantra team pull the coin.
Additionally, a section of the community speculated that the project team might have used OM coins as collateral for a huge loan. They opined that the loan could be from a centralized exchange and the team suffered a massive deficit due to a change in loan risk parameters, leading to a margin call.
Further, the sudden dip surfaced barely two months after OM recorded a massive rally that propelled the price of the token to $9.04, setting a new all-time high. The price-free fall has claimed more than 91.38% of the figure, leaving investors with a huge loss.
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