Is Mantra Token the Next Terra? OM Token Collapses 90%

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The Mantra token collapsed by a record 90% in a shock crash on April 13, 2025, during low-liquidity trading hours, from $6.30 to as low as $0.4, erasing over $5.5 billion in market capitalization within hours.

Mantra token Price Chart (Source: TradingView)

The fall, one of the most severe in recent cryptocurrency market history, has started a debate on causes and implications for the real-world asset (RWA) tokenization sector.

The Mantra token presently trades at $0.78 by April 14, 2025, far below its February peak of $8.99. The scale of the collapse is similar to Terra’s LUNA collapse, with retail investors expressing distress and near-total losses.

Also read: How RWA Tokenization Could Disrupt Financial Markets by 2030

Mantra Token Team Rejects Crash Blame, Points Fingers at CEX

Mantra’s management, led by co-founder John Patrick Mullin, denied any role in the crash, attributing it to “forced liquidations” by a major investor on centralized exchanges such as OKX and Binance.

Sherpas, OMies, and broader crypto community,

First off, the team and I greatly appreciate the support that we have received over the past several hours, which we believe is a testament to the strong support MANTRA has among its investors and community.

We have determined that…

— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 13, 2025

Mullin stated that the team’s Mantra token allocation remains locked, verifiable on-chain at the address mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam.

The team criticized exchanges for “reckless” handling during low-volume periods and promised a thorough investigation, with further details in a community discussion on X. While they also debunked rumors that it deleted its Telegram channel, citing the transparency in its operations.

MANTRA community – we want to assure you that MANTRA is fundamentally strong. Today’s activity was triggered by reckless liquidations, not anything to do with the project. One thing we want to be clear on: this was not our team. We are looking into it and will share more details…
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 13, 2025

Scam or Strategy? On-Chain Clues Sparks Debate

Despite assurances from the team, on-chain data shows millions of Mantra tokens were transferred to exchanges before the crash, including a reported $36 million moved from a Binance-linked address to OKX, supporting speculation of strategic positioning.

Also read: DeFi Meets TradFi: Tokenized US Treasuries Power a $5B Blockchain Revolution

Traders and critics have alleged insider selling, with some calling the event a “scam” with reference to Mantra’s $9.5 billion fully diluted valuation against a $13 million total value locked.

The burn of 21 million Mantra tokens, valued at $524 million, on April 2, 2025, may have influenced market dynamics, although no direct link to the crash has been confirmed.

RWA Reckoning: Crash Exposes Sector Cracks

The Mantra token crash has shaken confidence in Mantra, a tokenizing real-world assets (RWA) industry leader, despite recent achievements like securing a Dubai VARA license and a $1 billion partnership with DAMAC.

Analysts warned that the incident shows weaknesses in the RWA sector that is yet to emerge and remains susceptible to volatility.

The research head at Kronos Research, Hank Huang, said that such incidents demonstrate the necessity of a stimulating infrastructure to protect investors.

As investigations continue, the crypto community awaits clarity on whether this was a market anomaly or a deeper structural failure.

Author

Toheeb Kolade

Toheeb is an insightful blockchain reporter with deep knowledge of cryptocurrencies. With years of experience in financial journalism, Toheeb covers the latest developments in blockchain technology, cryptocurrency trends, decentralized finance (DeFi), and regulatory updates. Known for breaking news and in-depth analysis, Toheeb brings new angles on how blockchain is transforming industries and changing the global economy. From uncovering market movements to providing expert commentary on new technologies, Toheeb is dedicated to keeping readers informed about the developments in blockchain-related topics.

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